It’s In The Numbers
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
It looks like earnings news is driving the market again. Fortunately, this
time, it’s higher.
The S&P futures are +7.50, and the
Nasdaq futures are up lower as well.
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.
Always watch for
reversals.
Heading Up (at the
open)
Altera
(
ALTR |
Quote |
Chart |
News |
PowerRating) is trading near 120
3/4 on very strong volume. Watch for resistance at 121 3/16, the all-time high.
This move could lead it to a new high.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading
near 64, up five points from the close on Thursday. Watch for resistance just
under 66 and again near 70. Each of those points were the peaks during false
rallies.
Juniper
(
JNPR |
Quote |
Chart |
News |
PowerRating) is trading up near
178 1/2 following the news on Thursday. There is no overhead resistance, but
look for minor support near 177 in a turnaround situation.Â
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is trading up roughly
4 1/2 points near 58 on over 71,000 shares. Look for resistance in a band from
61 1/8 to 62 1/4. This move could represent a low-level breakout. In a major
reversal, look for support near 55 5/16.
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading up 4
points near 98 1/2. Look for psychological resistance at 100. The next key
trouble spot may be 103 1/2, from the pre-gap date on June 22.
Moving Down (at the
open)
Extend Systems
(
XTND |
Quote |
Chart |
News |
PowerRating) is down
roughly 30 points, near 50, on an earnings warning. If it’s unable to
hold 50, which tends to provide some support, look for it to become resistance.
In an reversal, look for more resistance near 52. Otherwise, watch for potential
support near 47 1/2. A gap below this level could take it out, in which case
we’ll watch for a potential move to 42 1/2.