PRE MARKETS

Markets are set to open lower on the heels of the slump in Chinese equities as they raise the stamp tax.

In the news:

ADP employment comes in at 97k; KO upgraded to Buy at C; FBR believes PXD is undervalued; CWTR beats estimates and raises guidance; JOYG light on revenues; PHM reducing work force by about 16%; CDWC going private at $87.75; Barron's reports that insiders sold $21.5 million of HPQ; and finally Cramer is bullish on LVLT APC XTO URS OLN CKEC GMR EIX ED D CSCO TM and VOD;

Gappers -Higher - CWTR SPNC DBRN OPWV BIIB CDWC SCUR; Lower-SOLF IBKR KONG CAF TSL FRO GSS PAY LFC MPEL GSK.

Some low 2 day RSI readings that may be worth a shot on the lower open:

MCD -4

CELG-4

BAX -3

NTAP-3

ROST -2

SNDK-1

WB -.4

And some high 2 day RSI reading that may be worth selling:

S-100

EMC -99

TGT-99

ROK-98

GOOG - 97

Here is the recent Trading Markets article on the strategy.