Markets Continue Their Trend of the Gap and Fade, WDAY, AEGR, LXRX, OSG

Consumer sentiment and earnings beats were not enough to keep the major indices in the green. Tech giants like Apple continued to languish after hitting all-time highs just days ago. This is in advance of what many predict will be the launch of the iPad mini.

The lackluster performance in October so far has mostly been attributed to stocks taking a breather after the near constant hype and buildup around QE3. A more pessimistic read could be institutional investors along with retail are positioning themselves ahead of the election and the outcome of the negotiations regarding the impending fiscal cliff facing the United States.

Europe also remains an outstanding issue with no real resolution in sight. China’s data deluge also begins in earnest over the weekend, so investors want to see how much the growth engine of the country is cooling off.

Sure, so far earnings season has seen a fair share of beats, but with the expectations bar being so low, are those beats really beats in the traditional market sense? Economic data points continue to muddle the picture.One month you have a stellar jobs report, then the next it slips back. Housing continues to languish and consumers, while more upbeat, are not exactly rushing to stores or to their local realtors.

The market has turned into a game of wait and see as events unfold over the coming months.

Stocks to Watch

Workday, Inc. (NYSE:WDAY) closed the day up 73.89% at $48.69. WDAY traded more than 17 million shares today. Workday shares jumped $20 a share today after pricing its IPO at $28 a share. This came above its anticipated IPO range of $24 to $26 per share. Workday’s business revolves around software as a service concept. Basically, businesses pay them for computing capacity based on their needs.

Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) finished Friday up more than 14% at nearly $16 a share. AEGR saw a big increase in volume today with 991 thousand shares traded, many times more than its daily average of 159 thousand shares. Capstone Investments initiated coverage on Aegerion Pharmaceuticals today with a buy rating. An FDA panel is also slated to vote on the company’s drug, Lomitapide, next week. The company has a market cap of 406.47 million.

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) jumped 12.55% today and closed at $2.69. LXRX traded 2.9 million shares today, nearly triple its daily average. LXRX shares rallied today on positive data from its new tumor drug. The company has a market cap of 1.33 billion.

Overseas Shipholding Group Inc. (NYSE:OSG) tumbled 13.61% today at $5.08. OSG has traded 2.08 million shares so far today, well above its daily average of 724 thousand shares. OSG shares have dropped nearly $2 a share over the past five days and has lost more than half its value on the year. The company has a market cap of 157.02 million.

About Danny Fisher

Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.

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