Center Of Attention
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
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 tracking stock (QQQ)
or futures as leading indicators.
Names To Watch Today
Do not
forget, Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) is set to report earnings after the bell. This
is likely to move the market on Tuesday and to move Cisco intraday on Monday. If
you are looking to trade Cisco today, note that the charts from Friday show
resistance at 57. Should it gap over this price by the open, it may become
support.
The daily charts confirm
this.
QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) broke out of a cup
formation on Friday on very strong volume. It rallied intraday and held a
reasonably smooth path before a light selloff into the close. At this point,
it’s time to watch for a continuation move to take out the intraday high from
Friday. The volume on Friday was impressive, as it traded five times its
average. Clearly, there was heavy trading.
The five-minute intraday
chart from Friday shows that there is some new support at 120, just 2 points
under where it closed. The one random intraday spike makes me wonder if an
institution decided to make a purchase.
Good luck.