Down Market, Up Stocks
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 -4.50 and the
Nasdaq futures are -21.00.
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.
Heading Up (at the
open)
InFocus
(
INFS |
Quote |
Chart |
News |
PowerRating) is trading up 2 1/2
points to a new high. There is no overhead resistance. In a pullback, look for
support near 51, the previous high.
Kopin Corporation
(
KOPN |
Quote |
Chart |
News |
PowerRating) is
trading up 4 points, or greater than 10%. With it now over the 200-day MA, look
for resistance at 34 and 35 1/2. If it rallies, watch for trouble at 38
1/2.Â
ACT Manufacturing
(
ACTM |
Quote |
Chart |
News |
PowerRating) is
trading up 3 1/4 points to 59 1/2. As this is the all-time high, there is no
overhead resistance
Moving Down (at the
open)
Juniper Netowrks
(
JNPR |
Quote |
Chart |
News |
PowerRating) is trading
down 1 1/2 points on average volume. Look for support near 209 3/4 and 206. If
it closes lower, this will be the fourth day of the pullback from the highs.
Mpower Communications
(
MPWR |
Quote |
Chart |
News |
PowerRating) is
trading down 3 points to 9. This stock has been slaughtered since topping off
near 40. On Thursday there was another high volume move lower. Because the stock
is now under 10, only aggressive traders may want to watch this one. Look for
resistance near 10.