One Stock Does Not Make a Market
After reporting quarterly earnings, Intel (INTC: NASD) is set to open higher by more than 2%. Over the past three years, similar reactions resulted in a strong open and weak close for the Nasdaq. In the table below, I've summarized the day's range. In each case, the Nasdaq futures opened higher by roughly 1%, still managed to reverse and post a negative intraday low, and (surprisingly) ended the day lower in five of the six. Since this pattern emerged last quarter, I've also included the chart of Intel and Nasdaq for the Q4 '04 release and highlighted the next day's bar. Naturally, past performance is not an indicator of future results, but the gap risk is there.
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