Diet Soda
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.
Morning Outlook
The S&P futures are +1.75.
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 tech sector.
Heading Up (at the
open)
Biomet
(
BMET |
Quote |
Chart |
News |
PowerRating) is trading up 2 points just under 40. With resistance just
overhead from 40 to 41, opening hour traders may want to wait for a move above
this band before opening a position. The next resistance area is just over 42,
and then at the year high of 44 1/2. The stock has been consolidating for a
while on the daily charts. Biomet also just announced a split.
REVERSAL WATCH: On Wednesday I mentioned Entrust
(
ENTU |
Quote |
Chart |
News |
PowerRating), which
fell over 6 points in the first couple hours of trading. On Thursday it’s
bouncing a bit, now trading almost 2 points higher. The current bid is at 38.
There’s some resistance at 39 and 40. Support remains near 34 1/2. Watch for a
reversal on Entrust, as there may just be some light bottom fishing going on
here.
Phone.com
(
PHCM |
Quote |
Chart |
News |
PowerRating) is trading up roughly 3 points from the close on 70k+
shares. Look for some trouble near the 10-day MA at 70 3/8. The daily chart is
somewhat choppy, and the stock has been stuck in a range for several weeks now.
Wednesday’s high of 72 3/8 could be the first trouble spot, followed by
75. Note the downward channel on the daily charts.
REVERSAL WATCH: BMC Software
(
BMCS |
Quote |
Chart |
News |
PowerRating) was slaughtered on Wednesday
at the open. Thursday morning it’s seeing a little bounce. Look for short
opportunities if it takes out 21, which is 1/4 point below Wednesday’s low.
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) bounced off a near-term trendline on Wednesday. Set
your reversal alerts just below 118 7/8, Wednesday’s low. A break of that level
could result in a move toward 115 1/2 to 116. On the upside, if it can clear 121
1/2, look for a move toward 123.
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading over 100 at roughly 101. Now that it’s cleared
psychological resistance again, there may be some action in the stock. With the
futures only trending weakly, there may be little follow through in the high
flyers.
Moving Down (at the
open)
Visual Networks
(
VNWK |
Quote |
Chart |
News |
PowerRating) is trading near 11, below it’s IPO price from
January of 1998. Look for psychological support at 10 and at each whole number
below that point.
AtHome
(
ATHM |
Quote |
Chart |
News |
PowerRating) is trading down near 18. With the bottom of its near-term
trading range at 18 1/4, it may head down to 17 1/2 before bouncing, which was
the bottom of another recent range. If it breaks that level it could head toward
16 1/2. In Trading the Techs AM, out at 11:00AM ET, I’ll take a look at ATHM as
well as PHCM.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,