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Tickers in this Article: WFC, WB, BAC, C, M, INFY
The companies listed below are trading on heavy volume Friday following major news announcements. By watching the news and the heavy volume movers you can find the big winners both on the long and short side.

Usually these heavy movers have what they call "gap up" or "gap down" openings on news. What this means is that they are opening up or down by a certain amount from their previous close. To find the right one you must watch and see how the stock trades within the first hour of the open. If the stock holds the gap, that means that you have a short term support level where the opening was. This is usually an indication that the stock is moving higher or lower accompanied by heavy volume and open interest. (To learn more about gaps, and how they should be interpreted, read Playing The Gap.)

Citigroup Withdraws Wachovia Bid
Wells Fargo
(NYSE:WFC) and Wachovia (NYSE:WB) announced that they will stick with the October 3 announcement for Wachovia to be purchased by Wells Fargo for $5.43 per share. The deal will turn Wells Fargo from a regional bank with West Coast exposure to a national bank competing with Bank of America (NYSE:BAC). In light of the announcement Citigroup (NYSE:C) said that it will be dropping its bid to purchase the troubled bank. What we are seeing is continuing consolidation in the banking industry - where the stronger banks are absorbing those who are highly leveraged and exposed to the credit markets. The banks are increasing their overall competitiveness by going into markets that they are not currently in and picking up the sold assets that the markets have been discounted over the past year. Volume on Wachovia was 65.8 million shares at 12:08 pm EST compared with its average daily volume of 121 million shares.

Macy's Cuts Estimates
Macy's
(NYSE:M) cuts its full year earnings estimates to $1.30-1.50 per share. This is down from previous guidance of $1.70-1.85.Management said that fall same-store sales could be down 3-6%. Shares of Macy's had traded 11.0 million shares by 12:09 pm EST compared to the average daily volume of 9.5 million shares. What we are seeing is continuing weakness in the retail sector as the economy continues to slow and consumers cut their overall spending hit by a credit crisis and a weak economy. (For related reading, see Can Earnings Guidance Accurately Predict The Future?)

Infosys Technologies abandons Axon Group Bid
Infosys Technologies (Nasdaq:INFY) announced that it will not try to out bid HCL Technologies for Axon group as the slowing economy has hurt orders and its bottom line. The company said that earnings for the year ending on March 31 will come in at $2.24 compared with previous estimates of $2.32. The company said in a statement, "The revision of the forecast reflects the current economic situation and the drastic depreciation of major global currencies against the U.S. dollar." Shares have traded 3.2 million shares by 12:10 pm EST compared with the average daily volume of 3.5 million shares. What we are seeing is the U.S. economic slowdown now being felt worldwide. It is having a major effect on IT decisions makers as businesses rein in spending due to the tight credit conditions.

Bottom Line
By carefully watching the news, volume, and how to the stock reacts to a gap opening you can have a very good indication how the stock will trade both on the long and short side. However, it is important see if the stock can hold the opening price level within the first hour of trading to determine if it is the right time to get involved.

To learn more about monitoring volume, read our related article Gauging Support And Resistance With Price By Volume.

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