Market Volume Explodes To Third Highest Since Flash Crash As FNSR Implodes For Second Time In A Row
Stock volume, hiding for so long, finally made an appearance. The all dominating ES, which determines the stock price for virtually every other security in the stock market, surged to 3.7 million shares, the 3rd highest in 2011, with only the post-Fukushima nuclear explosion panic from March, when the Nikkei briefly went bidless, higher, and also the third highest since the Flash Crash days of last May. As reported earilier, now that all support lines have been breached, the next bounce can be expected at around 1,244 or the 200 DMA. Should that be taken out and it will be to make way for Operation Twist 2, we will promptly see the 1,150s once again. After that, we are straight down to Jackson Hole levels.
There was, however, one stock that was not determined by the ES, especially in After Hours trading: FNSR. Just like back in March when it tumbled by 15% on weak guidance, and the warning that "the Company will be impacted by...a slowdown in business in China overall" which prompted us to warn back in March that this is the "beginning of the end for the tech bubble" so the firm just defecated the bed once again, once again preannouncing that " the Company indicated that it currently expects revenues
to be in the range of $215 to $230 million; GAAP operating margin to be in
the range of approximately 4% to 6%; non-GAAP operating margin to be in
the range of 8% to 10% and non-GAAP earnings per diluted share to be in the
range of approximately $0.17 to $0.21." This compares with street estimats of $253 million and EPS consensus of $0.37.
This is what happened once the stock was reopened at 4:30.
Bottom line: another Cramer momo stock up in flames.
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