Swing Trading Strategies & Stock Picks Since 2003

Adobe Systems (ADBE): Stock jumped from 37.86 to an after-hours high of 40.95 following the company's quarterly results after-hours Tuesday.

It settled in a plus-side range of 40.25 to 40.55 through the first-half of the evening before slimming down its gains to an upside range of 39.55 to 40 in the mid-session and second-half of night trade.

After-hours indications would suggest ADBE records a pre-market open Wednesday near the 39.80 to 40 mark. ADBE maintains a long-term widening pattern between the sessions following after-hours earnings events - a pattern it has held for five years. The stock has seen more aggressive next-day percentage closing levels following 11 of its last 18 after-hours, earnings-driven moves. The near-term pattern is mixed however, with two widening and two narrowing moves in the last four quarters. We noted earlier today that when looking deeper into the performance data, longs may be interested to know that ADBE has seen a positive post-bell earnings-driven trade in 10 of the 18 quarters we've tracked, and in eight of those upside evening moves the stock has followed that trade with a more aggressive positive run in the next day's regular session.

With such a strong trend in place for the upside we would look for a potential long play on the stock early today. Morning buyers may want to linger near 39.50 to 39.80, levels that could see morning interest as traders possibly make a run at again breaking to 40 or above.