Hit The Snooze Button
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 +2.00 and the
Nasdaq futures are +22.00.
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.
While the Nasdaq futures are trading higher, they are not trading above fair
value, suggesting a negative opening. Few stocks are making significant moves in
the pre-market. Many traders are waiting to see this week’s earnings releases.
Tuesday we will see earnings from IBM and Intel.
Wednesday we will see earnings from Sun Microsystems, AOL, EMC, Microsoft,
and Texas Instruments.Â
Chevron’s move to buy Texaco is likely to move the oil sector, but with so
much confusion already in that group, no one can be sure in which direction.
Look for these stocks to open a bit late.
If you like volatility, break out your party hat!
Heading Up (at the
open)
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) is trading up 5 points. Watch for resistance from 74 to
75, and again near 76 3/4. QCOM bounced just under its 50-day MA on Friday, but
was unable to take out Thursday’s high.
Convergent Group
(
CVGP |
Quote |
Chart |
News |
PowerRating) is trading up over 50%. Scalpers may want to
keep an eye on this low-priced issue. Look for resistance at 8. Apply your
knowledge of Level II quotes to trading this stock, as I have seen bids of
99,000+ shares in the pre-market.
Moving Down (at the
open)
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is trading slightly lower. Look for near-term support near 37 and 35. I will take a look at Intel in Trading the Techs AM at 11:00 AM ET today.