Tech, Strong Like Bull
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 +3.00.
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 and tracking
stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) futures or
tracking stock as leading indicators. Earnings are moving some of the big names
today.
Monday was a perfect example of why it’s crucial to watch for reversals in
the first 30 minutes of trading.
Take a look at what happened in the futures market on Monday.
Heading Up (at the
open)
Freemarkets
(
FMKT |
Quote |
Chart |
News |
PowerRating) is trading up
10 points in the pre-market on very strong volume. Watch for resistance in a
band from 65 to 65 1/2. In a pullback, look for near-term support near 68 and
again near 58 1/2.
Priceline.com
(
PCLN |
Quote |
Chart |
News |
PowerRating) is bouncing a
bit following Monday’s beating. Watch for a reversal and look for it to take out
Monday’s intraday low. There may be resistance as early as 32 7/8.
Someone’s buying some Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating)
this morning; it’s trading up 3 points on very strong volume. Watch for
resistance near 67 3/4. If there’s enough momentum to carry it higher, watch for
trouble just under 70, where we find both the 50-day MA and a false-rally day.
SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating) is only up 9 points
this morning on strong volume. Currently trading near 418, resistance is up near
431. Note that resistance and support on SDLI are both far apart due to the
large average daily range of the stock price. Support? Watch 400 and 395. As I
write this I see the price gapping all over the place. I’ve seen trades go
through at 419 and 397 in the same three minute period.
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating), which is both
scheduled to be added to the S&P 500 and to release earnings on Wednesday is
trading up 1 1/2 points on very strong volume. Watch for resistance near 137. In
a reversal, look for weak support near 131.
Voicestream Wireless
(
VSTR |
Quote |
Chart |
News |
PowerRating) is
likely to be volatile,. due in part to the bid from Deutsche Telekom. It’s
currently trading up 7 points on strong volume. Look for resistance near 138 1/2
and again at 140 and 142. In a reversal situation, look for support near 129.
Swing traders and daytraders should both also set alerts below Monday’s intraday
low.
Look to go with the
trend in the early morning, but be prepared for reversals.
Until later,