Carpe Momentum
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 +5.00 and the
Nasdaq futures are +43.00.
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 and tracking
stock (QQQ) futures or
tracking stock as leading indicators.
Many traders are looking for a
short-term bounce in the tech sector.
Heading Up (at the
open) – Watch for Reversals!
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading up 6 points near 66 on over 53,500 shares.
Watch for resistance at the 50-day MA of 77 5/8. In a reversal, look for support
near 74 3/4 and 72 3/8.Â
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) is trading up 2 1/2 points near 65. QCOM is in a
low-level basing pattern at the moment and the 50-day MA is currently at 67 3/8,
which may provide resistance. In a reversal, look for support at the various
lows of the trading range, including 63 and 62 1/4.
Juno Web
(
JWEB |
Quote |
Chart |
News |
PowerRating) is bouncing off its lows and trading up 3 points near
11. The 50-day MA is at 9 5/8. Look for resistance just under 12 and for support
just over 10.Â
SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating) is trading up 6 points on light volume in the
pre-market. Look for resistance near 343 and 350. Support may appear at
317, 314, and 312. This stock has a very large average daily range, so expect
volatility.
National Computer Systems
(
NLCS |
Quote |
Chart |
News |
PowerRating) is trading up roughly 13 points on
strong pre-market volume. There is no overhead resistance because it’s at a new
all-time high. The stock is being acquired at 73 points a share.
Globespan
(
GPSN |
Quote |
Chart |
News |
PowerRating) bounced off a trendline on Friday on strong volume. It’s
currently trading up roughly 1 1/2 points on light pre-market volume. Watch for
resistance near 113 3/4. The next resistance point is just over 119 1/2. The
50-day MA is at 107 1/2, which, along with 110, may provide support in a
reversal.
Moving Down (at the
open)
Cephalon
(
CEPH |
Quote |
Chart |
News |
PowerRating) is trading down roughly 20 points. This move breaks the
trendline that it had held through three dips. Watch for support near 40 and 41,
at which points we may see a bounce. In a reversal, watch for resistance near 45
and 46 3/4.
Remember to watch for reversals and to use protective stops on each trade.