Don’t Count Your Chickens
Each morning this list will contain those stocks with the potential to
make a quick but tradable move in the first hour. The information listed
here is designed for the trader who catches the early morning momentum, between
the first five and 45 minutes of trading. Many stocks open each morning, run for
several points and then reverse. I will cover stocks with this potential and
highlight possible reversal points and resistance areas. These points need to be
monitored closely, as the stocks may turn quickly here. Be ready to lock in
profits quickly.
Morning Outlook
The S&P futures are -7.00 and the
Nasdaq futures are -28.00.
Watch for a turnaround in the first 10-30 minutes of trading. Keep an eye
on the stocks that gap the most in the morning. Use the Nasdaq tracking
stock (QQQ)
or futures as leading indicators.
About three hours ago I saw the futures all trading at the same positions but
with postitive signs next to them. They have reversed overnight. This may end up
positive.Â
Moving Down (at the
open)
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) is trading down 3 points on strong volume. Look for support
at 65 and 64. Watch for a reversal.
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) is trading down 2 points. Watch for a bounce near
psychological support at 200. The 50-day MA is another 13 points away at 187.
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) remains weak and is trading down another 4 points to 108.
Look for support near the 200-day MA at 107. See my article Trading the Techs
for more information on Ariba’s bigger-picture situation.
Next Level Communications
(
NXTV |
Quote |
Chart |
News |
PowerRating) is trading down 12 points on average
volume. Look for support near 50, 49, and 45. Again, watch for a reversal in
early morning trading.
Computer Associates is likely to trade down on an earnings warning.
Guidant also warned.