Big Smile

October 18, 2000
Dave Baker

Each morning this list will contain those stocks with the potential to

make a quick but tradable move in the first hour.Â 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 -23.20, and the
Nasdaq futures are -95.00.

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.

Day’s like these actually put a huge smile on my face.

Almost every big name stock is trading lower. On days like Wednesday, the
first thing I like to do is make a list of stocks which are likely to make
significant reversal moves should the market bounce. Often after a limit down
opening like the one we may see this morning, there is a quick reversal.

First, look at some of the pre-market damage.

Second, decide which stocks are the stongest.

Fourth, pick a reversal point.

Five, wait patiently.

The futures paint a bloody picture of the opening, but things can always
change, and quickly. We will prepare ourselves the best that we can.

Until later,

David Baker

Big Smile

BUY THE FEAR, SELL THE GREED

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