Summer Friday
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 +0.30 and the Nasdaq futures are 8.50. 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 (
as leading indicators.
Activity is light
in the pre-market. Watch for the usual light summer Friday volume.
Going Up
Credence Systems
(
CMOS |
Quote |
Chart |
News |
PowerRating) is
trading up roughly 3 points. If it holds above 42, watch for
resistance near 43 1/4 and near the 20-day MA at 44 3/4.
Heading
South
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) is moving down
following last night’s earnings announcement. Watch for support
at 38 1/2 and near 37 5/8. It had entered a mini-consolidation
following its recent decline. The stock has an average daily
range of 2 points and an ADX reading of 35.51.
New Focus
(
NUFO |
Quote |
Chart |
News |
PowerRating) is trading
down roughly 5 points. If it moves below 116, there may be minor
support near 115 1/4. The 5-day MA is at 114, which may also help
in a decline. In a reversal, watch for resistance at 118 1/2.
Note that this stock is quite volatile and can have a large bid/ask
spread.
PMC Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) is trading
down a bit in the pre-market on light volume. Watch for support
at 197, 195, and 193. In a reversal, watch for resistance near
200, where you’ll find the 5-day Ma. The stock have been in a bit
of a rolling pattern lately. It also has a very wide average
daily range.
Internet Capital Group
(
ICGE |
Quote |
Chart |
News |
PowerRating)
is trading for 3 points in the pre-market. If it moves below 29,
support may appear near 27 7/8, 26 3/4, and 26 5/8. In a
reversal, watch for resistance near 30 1/2 and 31 3/4. ICGE is a
B2B firm.