It is hard to predict where an issue will go the day after an earnings report. Technical analysis can give you some guidelines, but how investors will react to either good or bad reports is random. Yet the technical levels from that session can provide some guidelines to follow to help predict the future course of price action.
One of the many advantages of listening to Benzinga's PreMarket Prep show is that investors are instantly alerted to breaking news that comes out during the broadcast.
More importantly, the price action in an issue and its impact on the broad market is immediately relayed to investors.
There have been some peculiar price movements in individual issues over the last few weeks, instigated by either earnings, forward guidance or corporate news. Perhaps the one with the most puzzling is Walmart Inc (NYSE: WMT), which is the PreMarket Prep Stock of the Day.
As second-quarter earnings season reaches its midpoint, it has yet to be determined whether issues in the growth technology sector have found a long-term bottom. So far, it has been a mixed bag with several to still report.
When an issue makes a large move in the after-hours or premarket session off an earnings report, it can be difficult to determine whether the move will continue in that direction.