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Palomar Medical Technologies Inc. (NASDAQ: PMTI) is getting hit very hard after disclosing that Johnson & Johnson (NYSE: JNJ) is dropping its partnership for its home-use light-based devices used to reduce or reshaping body fat including cellulite, reducing skin aging appearance, and the prevention of acne.  Palomar stock at 10:18 AM EST is now down 16% at $12.82 on 579,000 shares versus an average daily volume of only about 150,000 shares.  Its 52-week trading range is $5.83 to $18.94.  This is creating a technical event as well as the 50-day moving average is $14.66 and the 200-day moving average is $11.49. Palomar does have options, but they are thinly traded.
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JON C. OGG
OCTOBER 16, 2009
Advanced Micro Devices Inc. (NYSE: AMD) is getting lashed this morning as shares are down 5.8% at $5.83 As of 8:31 AM EST we have seen only about 350,000 shares trade versus a 27 million share average. This one fell by 3.72% to $5.96 last night, but on some 8,237,097 shares after earnings. This one has a lot of air left in it even after this drop as the 50-day moving average is down at $4.93 and the 200-day moving average is $3.70.
JON C. OGG
International Business Machines Corp. (NYSE: IBM) is on deck for earnings this afternoon, and traders have begun their last minute bets by using call and put options. The OCT-2009 CALLS and PUTS expire tomorrow at the close, so these bets are right around the closest strike prices only. We have included the OCT-2009 CALLS and PUTS only along with trading volume and the listed open interest.
CALL$   Volume   OpInt
120.00Â Â Â 11,228Â Â Â 33,884
125.00Â Â Â 9,571Â Â Â 20,881
130.00Â Â Â 10,166Â Â Â 18,605
135.00Â Â Â 2,180Â Â Â 6,788
PUT$   Volume   OpInt
115.00Â Â Â 1,900Â Â Â 17,011
120.00Â Â Â 3,659Â Â Â 9,824
125.00Â Â Â 5,395Â Â Â 9,586
At 2:32 PM EST we have shares trading down 1.1% at $126.96 and trading volume in the stock is only about 5.5 million shares versus a full day’s trading volume of about 6.7 million shares. Because of its super high share price and because the Dow Jones Industrial Average is a price-weighted index, our take is that IBM is perhaps more crucial than any other component as far as whether this DJIA 10,000 level can hold.
JON C. OGG
Linktone Ltd. (Nasdaq: LTON) is surging on news that the wireless interactive entertainment company in China has entered into a mobile video agreement to make video highlights of Major League Baseball games available to customers in China with China National Radio Mobile Media (Beijing) Co. Ltd. This is traditionally a low volume stock with only about 62,000 shares trading per day. At 10:41 AM EST we have seen an exponential volume day with some 385,000 shares traded (6X volume) and the stock is up 20% at $2.50. JON C. OGG
Acorda Therapeutics, Inc. (NASDAQ: ACOR) is getting some of its lost mojo back. The company’s fampridine-SR for multiple sclerosis was given a favorable FDA panel review yesterday in a 12-1 vote in support of a future marketing approval for the drug. The stock was halted yesterday and FDA comments last week battered the stock. This morning we have a 54% gain to $25.90 after Tuesday’s $16.74 close. As of 8:46 AM EST we have seen a whopping 1.7 million shares trade hands, making this already an exponential volume alert versus 800,000 on average and the market is not even officially yet open.
JON C. OGG
OCTOBER 15, 2009