Hot Stocks: Lions Gate Entertainment Corp. and China Green Agriculture Inc.

The Dow Jones Industrial Average (DJIA) has rallied back from early weakness, and a test of support in the 9,950 region, to trade higher by nearly 50 points. The DJIA has been bolstered by a continued rise in housing prices, as well as a solid Chicago purchasing managers' index and a rise in consumer confidence. Checking in on the New York Stock Exchange (NYSE), we find that 1,898 stocks are trading in positive territory, while 910 are firmly in the red. On the upside, we have Lions Gate Entertainment Corp. (LGF) sporting a gain of nearly 13%, while, China Green Agriculture Inc. (CGA) is leading the minority lower with a loss of nearly 7%.

Shares of Lions Gate Entertainment Corp. (LGF), have soared more than 13% so far today, after investor Carl Icahn lifted his offer for the firm to $7.50 per share. Icahn had previously offered $6.50 per share for Lions Gate, but the company refused the bid.

Despite the $7.50 bid, LGF shares have been unable to topple long-term resistance in the $7.40 region. The equity has not closed a week above this level since October 2008. Meanwhile, sentiment toward the security is heavily negative, with the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.10 arriving in the 87th percentile of its annual range, while nearly 7% of LGF's float is sold short.

Despite a lack of headline news, the shares of China Green Agriculture Inc. (CGA) have tumbled nearly 7% so far today. Investors could be reacting to rival Monsanto Company's (MON) softer-than-expected 2010 earnings outlook, sending CGA shares lower in sympathy. The drop has been particularly hard on CGA, with the stock plunging below former round-number support in the $10 region. CGA has not closed a session below this area since July 20.

Bearish investors, however, could be celebrating their good fortune. CGA's SOIR of 1.61 rests just two percentage points shy of an annual peak, while nearly 21% of the stock's float has been sold short. However, there is a change for the company to make amends and distinguish itself from Monsanto. After the close of trading tomorrow night, CAG will step into the earnings confessional to release its quarterly report. Currently, analysts are looking for a profit of 24 cents per share. Historically, the company has bested these expectations in each of the prior four reporting periods. Another solid report tomorrow night could send CAG sharply higher, especially since expectations are currently set extremely low.