Not every company is enjoying the Day After. In fact, shares of Knight Transportation plunged more than 4% in early trading after the company warned that its third-quarter results would come in below expectations. For the quarter, KNX expects earnings in a range of 18 cents to 21 cents per share, compared with analyst expectations for 23 cents. The company blamed the weaker results on an industry-wide drop in freight and excess truckload capacity for the lowered guidance. At last check, KNX had rebounded a bit, and was only down 0.55%.
More importantly for the stock, it has managed to reclaim support at its 10-day and 20-day moving averages, along with key technical support at the 18 level. This trio of support/resistance levels had held KNX lower since early September. On the sentiment front, the shares there is still some excess optimism to work out among investors - which could cause some trouble for the equity. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.26 ranks below 85% of all those taken during the past year.