Action!
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 -5.00 and the
Nasdaq futures are -33.00.
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) futures or
tracking stock as leading indicators.
WATCH FOR REVERSALS! I cannot
say that enough. We’ve seen so many of them in the last few weeks.
Heading Up (at the
open)
Voicestream
(
VSTR |
Quote |
Chart |
News |
PowerRating) is trading up 2 points on strong volume. Watch for
resistance near 138 1/2. In a reversal, watch for support near 134, which was
Monday’s closing price.
Oxford Health Plans
(
OXHP |
Quote |
Chart |
News |
PowerRating) is trading up 2 points on over 31,000 shares.
OXHP has a small average daily range as compared to a tech stock, so look for
scalping opportunities. Watch for resistance near 24 1/2. OXHP is moving on
earnings news.
Nortel
(
NT |
Quote |
Chart |
News |
PowerRating) is trading up 5 points after last night’s earning’s
announcement. Look for support at 89. It’s trading at an all-time high, so there
is no overhead resistance. With the futures trading lower, watch for selling
into a rally.
SDL Inc
(
SDLI |
Quote |
Chart |
News |
PowerRating) is trading up roughly 3 points on light volume. It’s
currently trading over 400, a number which may provide some support in a pull
back. Watch for support at 399 and 395. Watch for resistance at 414 and
424. The average daily range on SDLI is quite large.
Art Technology Group
(
ARTG |
Quote |
Chart |
News |
PowerRating) is trading up 10 points on light volume.
Watch for resistance in an area from 116 to 118, and then up near 122. This
pre-market move puts ARTG back into its consolidation pattern from the last few
days.Â
Moving Down (at the
open)
Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating) is trading down
2 on light volume. Watch for support near 37 and 35 1/2 to 36. Broadvision fell
out of a near-term consolidation on Monday and rebounded a bit on Tuesday. It
broke out of this same consolidation early on, but quickly reversedd. Watch for it
to re-enter this pattern.
Akamai Tech
(
AKAM |
Quote |
Chart |
News |
PowerRating) is trading down roughly 1 point on light volume. Look
for support at 83, 81, and again at 80. Should it reverse, watch for resistance
near 85, where is closed on Tuesday, as well as at the 50-day MA.
F5 Networks is trading down 1 point following its earnings announcement.
Watch for support near 40 3/8. A break below 40 could provide a swing trade
opportunity as well.
Vignette
(
VIGN |
Quote |
Chart |
News |
PowerRating)Â is trading for roughly 9 points on strong volume.
Look for support near 34 and 30.
Other Potential Movers
CMGI may be moving on upgrade.
AMZN may be moving on a downgrade.