There are several critical aspects of the PreMarket Prep Show that no other financial medium has even a clue about. One of them is interpreting order flow and price action in pre-market and post-market trading.
There was an excellent example of this unique content during Friday’s show in relation to the premarket price action for Kroger Co KR. As a result, it is PreMarket Prep Stock of the Day.
Kroger shows resistance ahead of Q2 report: In the last month there has been a seller or group of sellers in the $50 range. This was evidenced by three consecutive highs in this range in mid-August ($50.18-$50.34).
Additionally, Kroger hit a high of $50.14 early in Thursday’s session and weakened to end the session at $48.36 (closer to the low), a net change of a $1.46 or 2.0 drop .9% corresponds.
This contrasted with the S&P 500 Cash Index, which gained 0.07% to close near the session high.
Kroger’s Q2 report: Before opening Friday The grocer reported quarterly earnings of 90 cents a share, beating analysts’ consensus estimate of 77 cents by 16.88%.
The company reported quarterly revenue of $34.6 billion, beating analysts’ consensus estimate of $34.25 billion by 1.02%.
The company also raised its fiscal 22 outlook compared to the second quarter and planned a $1 billion share repurchase plan.
PreMarket Prep Spots Big Sellers: Active traders need to remember that when trading pre- or post-market, buyers or sellers rarely show their whole hand.
Many use “iceberg orders” that only reveal small amounts (100 shares), but their intention to buy or sell can be much larger.
When the stock was mentioned on Friday’s show, it had already risen to $51.30 and was actively trading in the $50 range. co-host Dennis Dick immediately identified an extremely large sell order of 62,000 shares at $50.
“This is a huge order at ARCA considering only 60,000 shares have traded in the premarket so far,” Dick said. “This order is consistent with the daily charts because…
