Come On Lucky Number Seven
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
(Watch for Reversals)
The S&P and Nasdaq futures are up,
so go with the flow.
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. In the case of a reversal, be prepared to
switch strategies.
Heading Up (Watch
for Reversals)
Conexant
(
CNXT |
Quote |
Chart |
News |
PowerRating) is trading at 49,
just under psychological resistance at 50. The 50-day MA is just overhead at 49
3/4 as well, so you may want to wait before going long. Above those levels, look
for resistance at 51 1/4.
En Fuego:
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading 20 points higher than its post-split close. It’s
traded over 1,500,000 shares already in the pre-market and is currently bid over
77. Look for a resistance band from 79-80 as well as at 85 and 90. Looking for
momentum? Rambus has got it.
HOT:
SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating) is trading 2 points higher on lighter-than-average
pre-market volume. There is no overhead resistance.
RF Micro Devices
(
RFMD |
Quote |
Chart |
News |
PowerRating) is trading
at 99, just under psychological resistance at 100. Consider waiting for a move
over 100 3/8 before going long. Then look for resistance near 102, and at the
50-day MA at 103. If the momentum can carry RFMD higher, it may see 105 or 110
before hitting another turnaround point.
Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating) is trading just
over 50. Look for resistance at 52 1/2 and near the top of its trading range at
54 1/2. Swing traders should watch for a move above 56.
Moving Down (Watch
for Reversals)
Covad
(
COVD |
Quote |
Chart |
News |
PowerRating) is trading under 20
on 1,000,000+ shares. There is light support at 19 3/4 and 19. Consider watching
for a move below these levels before opening any short positions.
Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating) is down 5 points,
trading near 119. Look for support at 118 1/2 and 116 1/2. If there’s a
turnaround, look for resistance at 122, 124 1/2, and 126 1/2. Keep a five-, 10-,
and 20-period MA on your five-minute charts in the first hour. Adobe
reported better-than-expected earnings last night.
NYSE Movers
Xerox
(
XRX |
Quote |
Chart |
News |
PowerRating) may move on an earnings warning.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,