PreMarket Prep: Buy The Dip Still Working

Earnings reports remain the focus on Tuesday's PreMarket Prep Show with one notable trend, whether good or bad earnings, "buy the dip."

Beyond Meat Q3 Report Leaves A Bad Taste In Investors Mouth

Beyond Meat's BYND reported a solid beat for EPS and sales. However, once a stock becomes out of favor, it's extremely hard for it to get back in. Once a Wall Street darling when it peaked at $239.71 in July, it's outrageous valuation finally came home to roost.

After observing the pre-market beatdown, I identified a series of lows at the $78.00 area from late May as an area to cover a short or nibble at a long. However, the whoosh off the open found buyers just ahead psychological support level of $80.00, bottoming at $80.10 and mounting a rebound.

It will be important for that low to hold over the next few days for the issue to muster a rally back into triple digits.

Google EPS Miss Puts It In The Red

After making a new all-time high on Monday, Google GOOG needed to blow estimates away for the rally to continue. That didn't turn out to be the case with a substantial EPS miss and slight beat for sales.

During the show, the issue recovered from its after-hours plunge and was working its way toward the close. Since the issue posted a new all-time closing high, co-host Dennis Dick emphasized that in order for the rally to continue, it must clear its closing price from Monday at $1,288.98. Off the open, it attempted to reach that level and was turned back $1,280 and retreated. Support was much harder to identify and the after-hours low was way down at $1,233.00.

Buy The Dip In Shopify?

Before the open, Shopify SHOP reported a mixed third-quarter print with EPS not comparable to estimates and sales coming in with a slight beat.

Off the headline number, the issue dipped under $300 on a few different occasions and managed to rebound every time. Following a lower open, it broke $300 again and staged a wicked rally to $321.88 before backing off.

Dennis Dick, who has been itching to put the issue in his long-term portfolio, purchased the issue at $300 and plans to hold for a long time.

Jeffrey Hirsch Joins The Show

Midway through the show, Jeffrey Hirsch, author of "The Stock Trader's Almanac" joined to discuss seasonal trends in the markets.

On Wednesday's show, Greg Weldon of Weldon Financial will be our guest to discuss interest rates and the commodities markets.