Six Days Of Red?
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 flat, and the
Nasdaq futures are -18.00.
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.
Moving Down (at the
open)
Exodus Communications
(
EXDS |
Quote |
Chart |
News |
PowerRating) is trading down 5 points on strong volume.
It is not under its 200-day and 50-day MA. Look for support near 48, 46 and 45.
The stock has been trying to climb off its lows since April, but may have some
trouble today.
Global Crossing
(
GBLX |
Quote |
Chart |
News |
PowerRating), which is being bought by Exodus, is trading down
only 1 point. The stock remains in its low-level consolidation pattern. GBLX was
down a bit earlier, but has been fighting its way back all morning.
Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) is moving lower on both a downgrade and a buyout (CSCO is
buying more companies). Look for support near 55 1/8 and 54.
MRV Commications
(
MRVC |
Quote |
Chart |
News |
PowerRating) is trading down 2 1/2 points on light volume.
MRVC closed below its 200-day MA on Wednesday. Look for support at 45 and 42, as
well as upside resistance now at 49 and the 200-day MA.