Crazy Ride
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 moving all over
following the announcement this morning, and they are currently +4.00. Fair
value is -2.58. The Nasdaq futures are currently +15.50.
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.
Watch for reversals.
Heading Up (at the
open)
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) looks to trade higher. Currently trading over 70, RMBS has
some resistance near 72 1/4, which was Thursday’s intraday high. In a reversal,
watch for support near 68 1/4, 66 3/4, and 65 5/8.
DoubleClick
(
DCLK |
Quote |
Chart |
News |
PowerRating) is trading higher on strong pre-market volume. As 37
1/8 to 37 1/2 is where we see the top of the near-term basing pattern, watch for
a continuation move above this level. Watch for resistance near 38 1/2, 40, and
41.
Altera
(
ALTR |
Quote |
Chart |
News |
PowerRating) is trading higher on reasonable volume. Watch for
resistance near 91 3/4 and 93 1/2. In a reversal, it could find support near 88
and 85 1/2.
Silicon Storage
(
SSTI |
Quote |
Chart |
News |
PowerRating) is trading up roughly 1 point on light volume.
Look for resistance near 62 and 65. In a reversal, watch for support near 60 to
60 1/4, and 58 3/4 to 59.
Moving Down (at the
open)
Earthlink
(
ELNK |
Quote |
Chart |
News |
PowerRating) is moving lower
on a downgrade this morning. Look for psychological support at 10 and minor
technical support near 10 5/8. In a reversal, watch for trouble from 13 1/4 and
13 1/2. There was a volume pick up during Thursday’s move lower.
American Power Conversions
(
APCC |
Quote |
Chart |
News |
PowerRating)
is trading down roughly 17 points, near 30, on strong volume. Look for pauses
and support near 29 1/2, 28 3/4, and 28.
Engage
(
ENGA |
Quote |
Chart |
News |
PowerRating) is trading up near
11 on reasonable volume. Watch for trouble near 11 1/4 to 11 1/2. Above this
level, watch for more resistance near 12 and 13. In a reversal, look for support
near 10 and 9 1/2.