Earnings Make The World Go Round
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.
If you thought that last week was the end of
the volatility, think again. Friday’s after hours earnings announcements are
moving the market this morning.
Before we venture forward this morning, remember that there is left over
resistance on the Nasdaq just under 3300.
Morning
Movers
During earnings season, traders should keep an eye on those names which
recently reported, as they are likely to show increased volatility.
JDSU’s earnings led to moves in many of the big optics names, including
Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) and Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating). Watch for continuations in these names
on Monday.
In the loser bracket from Friday’s after market news we first see Sawtek
(
SAWS |
Quote |
Chart |
News |
PowerRating),
the electronics component maker, which traded down $2.50 after a strong intraday
rally. Once again, investors were disappointed with amazing earnings. Watch for
early morning volatility.
Lycos
(
LCOS |
Quote |
Chart |
News |
PowerRating) is likely to move after shareholders approved the merger
with Terra
(
TRRA |
Quote |
Chart |
News |
PowerRating).
ACT Manufacturing
(
ACTM |
Quote |
Chart |
News |
PowerRating) is showing weakness following the downgrade
from Banc of America Securities.
Watch for strength from MicroStrategy
(
MSTR |
Quote |
Chart |
News |
PowerRating), which posted a smaller
than expected loss.
Scalpers should watch CTC Communications
(
CPTL |
Quote |
Chart |
News |
PowerRating), a $10 stock, which was
downgraded by two brokers.
Leading the news-driven names will most likely be Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating), which is
going to be added the Nasdaq 100, the NDX.
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