Buy The Rumor, Sell The News
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 +1.50, and the
Nasdaq futures are +11.00.
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.
Buy the rumor, sell the news still stands. Take a look at
Oracle.
Heading Up (at the
open)
Juniper
(
JNPR |
Quote |
Chart |
News |
PowerRating) is trading up 3 points on average
volume. Look for resistance near 203 and 211. There may be support at 199
and 196 1/4 in a pullback situation.
On the NYSE, Nike
(
NKE |
Quote |
Chart |
News |
PowerRating) may move higher based on
strong earnings. There have been no pre-market trades. Then again, look what
happened to Oracle.
Moving Down (at the
open)
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) is trading down 3 1/2 points on strong
volume. Look for support at the 50-day MA at 80 7/8. Watch for a reversal.
Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) is trading down 2 points on light
volume. The stock formed a short-term reversal pattern on Wednesday. Look for
support at 202 1/2, 200 and 196. Watch for resistance at 213.
On the NYSE, Maytag
(
MYG |
Quote |
Chart |
News |
PowerRating) is likely to move south on
another earnings warning. There have been no pre-market trades.
PSInet
(
PSIX |
Quote |
Chart |
News |
PowerRating) is trading down 1 point on strong
volume. They have revised their earnings estimates to indicate stronger
earnings. The stock is moving lower perhaps due to a misunderstanding. A move
below 13 1/2 may provide a shorting opportunity, as that is the low of the
near-term trading range. Expect a lot of jigginess in the early morning.