Citi

Has the Tide Turned?

If you had been out on the golf course yesterday afternoon and someone told you in the clubhouse that the Dow closed down 8 points, you might be inclined to think that it was a blasé day where nothing of subsequence occurred. However, you’d also be mistaken.

Okay, we’ll admit that the price action wasn’t terribly inspiring yesterday and that on a chart basis it did appear that it was a rather no-nothing day. But, it is our humble opinion that there was definitely something worthy of note to take away from the session.

No, we’re not talking about the fact that a couple of big-name banks will need to raise some additional capital. Actually, it is kind of surprising that it took so long for the results of the so-called stress tests to be leaked. And no, we are most definitely not talking about the ...

Dendreon (Nasdaq: DNDN) 134% HIGHER; announced that its pivotal Phase 3 IMPACT study of PROVENGE in men with advanced prostate cancer met its primary endpoint of significantly improving overall survival compared to placebo. Click here for the full report.

E*TRADE (Nasdaq: ETFC) 25.2% LOWER; reports Q1 loss of $0.41, 1 cent worse than the analyst estimate of ($0.40). Revenue for the quarter was $497 million, versus $699.6 million in the same quarter last year.

DreamWorks (NYSE: DWA) 20% HIGHER; reports Q1 EPS of $0.71, 26 cents better than the analyst estimate of $0.45. Revenue for the quarter was $263.5 million, versus the consensus of $211.51 million.

BioCryst Pharma (Nasdaq: BCRX) 17.7% LOWER; correcting following a 140% run since Friday amid the swine flu scare.

Mindspeed Technologies (Nasdaq: MSPD) 17.4% HIGHER; continuing higher following Q2 earnings yesterday. Also announced the launch of a complete suite of low-power ...

StreetInsider.com Morning Movers:
Interwoven, Inc. (Nasdaq: IWOV) 30% LOWER; entered into a definitive agreement to be acquired by Autonomy Corporation plc, a global leader in infrastructure software, for $16.20 in cash per share for a total transaction value of approximately $775 million. Shares of Interwoven closed at $11.84 yesterday.

Eclipsys (Nasdaq: ECLP) 30% LOWER; expects Q4 EPS 7c to 11c versus consensus of 35 cents. Eclipsys predicts Q4 sales of $124 million to $127 million versus consensus of $136.62 million

Teledyne Technologies Incorporated (NYSE: TDY) 20% LOWER; reports Q4 EPS of $0.84, 6 cents better than the analyst estimate of $0.78. Revenue for the quarter was $467.1 million, versus the consensus of $489.78 million. Sees Q1 EPS of $0.50-$0.55, versus the consensus of $0.78. For FY09, EPS are expected to be $2.70-$2.80, versus the Street estimate of $3.40.
DryShips, Inc. (Nasdaq: DRYS) 18% LOWER; sees Q4 adj-EPS well below ...

StreetInsider.com Morning Movers:

General Growth Properties Inc. (NYSE: GGP) 56% HIGHER; Ackman shows new 7.5% stake

Rio Tinto plc (NYSE: RTP) 28% LOWER; BHP Billiton Terminates Offer For Rio Tinto

Daktronics, Inc. (Nasdaq: DAKT) 20% HIGHER; reports Q2 EPS of $0.30, 11 cents better than the analyst estimate of $0.19. Revenue for the quarter was $169.7 million, versus the consensus of $153.11 million.

BHP Billiton Ltd. (NYSE: BHP) 18% HIGHER; BHP Billiton Terminates Offer For Rio Tinto (RTP)

China Finance Online (Nasdaq: JRJC) 14 ...

Now It Gets Difficult

While it is nice to see a plan come together, I’m sorry to say that from here, things get a little more difficult. I know that we’ve been yammering on a lot lately about the typical crash pattern. But the goal of repeating the historical tendencies early and often was to try and help everyone keep their heads about them when things were falling apart at the seams.

So let's review one more time for posterity. We got the panic low on 10/10 and the requisite reversal that signaled it was time for a dead-cat bounce. Then, after a 24% move off the bottom, the rally ended as quickly as it began and we got the downside retest that scared the bajeebers out of everyone over the past week. And as we’ve been saying lately, the next thing we were looking for was a jaw-dropping move ...