Nothing To Write Home About
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 +1.40 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 (QQQ) futures or
tracking stock as leading indicators.
Activity is light in the pre-market.
Some analysts are expecting to see traders sell into any rally.
Heading Up (at the
open)
Real Networks
(
RNWK |
Quote |
Chart |
News |
PowerRating) is trading up
2 points on light volume. Watch for resistance at 44, the high from
Wednesday. There may also be a bit of trouble at 42 1/2. RNWK may be
forming a bearish flag on the daily charts.
Clarent Corp
(
CLRN |
Quote |
Chart |
News |
PowerRating) is trading up 1 1/2
points on strong pre-market volume. Watch for resistance at 34 1/2 and 35 1/2.
In a reversal, it may find support at 32 and 30. All of the major moving
averages are far off. The stock tested its lows on Tuesday and bounced on
Wednesday. The volume has been strong lately.
High Speed Access
(
HSAC |
Quote |
Chart |
News |
PowerRating) is
trading up 2 points, or 40%. The 50-day MA is near 6 1/8. Watch for
resistance near 7 1/8, 7 3/4, and 8. Scalpers should keep an eye on this one.
Voicestream Wireless
(
VSTR |
Quote |
Chart |
News |
PowerRating) is
trading up roughly 7 points near 131 34. The 20-day MA is just under 133 1/2.
Watch for resistance at this level, as well as at 137 1/4 and just over 139. In
a reversal look for support at 1310, which is near the 50-day MA.
Moving Down (at the
open)
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) reported
earnings last night and started to trade higher. It’s currently down about 1
point. Look for support at 71 3/4, 71, and 70. In a reversal, there may be some
resistance at 72 and 74 1/2. The 200-day MA is not that far overhead at 78 3/8,
but it might see some resistance at 77 1/2 first.
Brocade
(
BRCD |
Quote |
Chart |
News |
PowerRating) is trading down 1
point after recently hitting a new high. Watch for support at 202 and 200. If it
can get back above 203 1/2 it may then have resistance near 206 1/8 and 208.
Note the recent strong volume.
Â