Action, Reaction
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.
Those which are
consistent morning movers with large average daily ranges are now highlighted by
the word "Hot".
Make sure to register for my
upcoming course "The Baker/Ten Electronic Trading Course", starting
July 7. Click
here to go to the registration page.
My latest trading lesson, Finding
Intraday Trendlines for Daytrading Part I, is also available now.
Morning Outlook
The S&P futures are +1.25.
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 |
Quote |
Chart |
News |
PowerRating) futures or
tracking stock as leading indicators.
Heading Up (at the
open)
BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating) is trading up
almost 4 points this morning. Currently trading near 42, it looks to open over
its five-, 10-, 20-, and 50-day MAs. Watch for a resistance band between 44 and
44 1/2.
Advanced Fibrecom
(
AFCI |
Quote |
Chart |
News |
PowerRating) is
trading 5 points higher, just under 48. On Tuesday it fell down to its 200-day
MA, where it found support. Watch for resistance near 50, where we find both the
50-day MA and psychological resistance.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) is trading up 3
1/2 points at 57 1/2. Look for resistance near 58 1/4 and 60. Novellus tried to
break out from a trading range recently, but failed and re-entered.
Tellabs
(
TLAB |
Quote |
Chart |
News |
PowerRating) is trading up 2
points at 64 1/2. With resistance at 64 5/8, perhaps only scalpers will be
interested in this one. The charts show a combination of trading ranges that
create several overhead resistance levels, making it difficult to determine
where it may move to.
Moving Down (at the
open)
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading just
under 105. Watch to see if Tuesday’s intraday low of 104 1/2. If the area
near 104 doesn’t hold, look for a move to 101 and then to 100. On a reversal,
look for a move toward Tuesday’s high of 108 5/8.
3Com
(
COMS |
Quote |
Chart |
News |
PowerRating) is trading roughly 1
point lower just beneath the low of its recent trading range. Look for support
at the 200-day MA at 46 1/2.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,