Chad, The Almighty
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
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.
Remember when people were complaining that volatility had dried up? I do not
think that this is a problem anymore. Look at the reversals that took place on
Wednesday. These election shenanigans have really spunked up this market. Throw
in a little bit of Greenspan, a couple of recounts, and some guy named Chad* — and you will get one crazy market.
Currently, the bulls and the bears are still at war. But, I think that the
bears still have it. Although the semiconductors have spent the last three days
in rally mode, they are right at the top of the channel. The downtrend remains
intact. Applied Materials’ conference call does not help this situation any, as
they noted slowing growth. It did bounce a bit when the earnings were first
announced, but as the call went on, the stock ticked lower.
One To Watch:
(
OXHP |
Quote |
Chart |
News |
PowerRating)
One group which has remained strong is healthcare. Oxford Healthcare
(
OXHP |
Quote |
Chart |
News |
PowerRating)
has been consolidating since rallying off its lows in October. On Wednesday, it
broke out to a new high on strong volume. Before the close, it retraced only a
bit from its highs. Set your alerts for a continuation move on Thursday. FYI,
the 200-day MA is 31.75.Â
But wait, OXHP is not alone. In fact, the whole group is
rallying.
Another name to watch, for a small move, is PG&E
(
PCG |
Quote |
Chart |
News |
PowerRating).
Being an energy stock, the moves are often limited, but with the recent fear in
the tech sector, defensive names have been getting some attention.
*No need to send that email, I am aware that there is no guy named Chad.