Following Monday's 9% decline, it seemed as though all hope was lost for the bulls. However, over the last two days, one positive trend investors have been experiencing is that many stocks announcing negative news have been rising. In the table below, we highlight selected stocks that have announced negative news in the last two days. For each name, we also include how the stock performed from the open to close on the day of the announcement (today's stocks are through 2PM).
As shown, most of these names have actually rebounded from their initial opening gaps lower. When stocks attract buying interest on bad news, it is a strong indication that many investors are starting to see values. As long as this lasts, it is an encouraging signal.
Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.
My wonder is whether the mother of all short squeezes is about to be orchestrated.
Posted by: Tom Chechatka | December 04, 2008 at 11:33 PM