Do The Hustle
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
The S&P futures are flat.
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.
Heading Up (at the
open)
Rambus’
(
RMBS |
Quote |
Chart |
News |
PowerRating) move in the
after-market on Thursday was so significant that only the most aggressive trader
should look at it. At this price, there is no overhead resistance.
General Magic
(
GMGC |
Quote |
Chart |
News |
PowerRating) is on the
move again, trading near 9. Because there is resistance near 9, consider waiting
for a move higher before opening a position. Except for scalpers, other
traders may want to wait to see if it can move above 10, because this price
creates psychological resistance.
Biotechs are heating up again.
Looking at Human Genome Sciences
(
HGSI |
Quote |
Chart |
News |
PowerRating), we can see what people think of
this group. HGSI is trading just under 150, psychological resistance. If it can
move above this level, look for more resistance at 152 1/4 and 153 1/4. Above
this level, it could go to 157 before turning around. On a retracement,
look for minor support at 145 and more support at 140.
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) is
trading near 127. JDSU pulled back to its trendline on Thursday, after moving up
roughly 25% over the last three weeks. Look for a resistance area from 130 to
132, as well as at 135. Be aware that it opened at 128 5/16 on Thursday, which
may also be a bump in the road. When looking for near-term support, you’ll want
to look at the trendline from June 7 to today.
PurchasePro.com
(
PPRO |
Quote |
Chart |
News |
PowerRating) is trading
near 41 on 3,500+ shares. If it can open or move quickly over 41, look for it to
challenge Thursday’s open and high, both near 42 3/4. If the momentum is strong,
look for more resistance at 43 3/4. A move above 44 1/4 may indicate a low-level
breakout. I’ll also take a look at PPRO in my 11:00AM Column.
Checkpoint
(
CHKP |
Quote |
Chart |
News |
PowerRating) had a false
breakout on Thursday, but the volume was strong, so look for it to possibly
challenge the top of its trading range again. I’ll take a look at it at 11:00AM
ET time in Trading the Techs AM.
Moving Down (at the
open)
Amazon
(
AMZN |
Quote |
Chart |
News |
PowerRating) is trading at 36
3/4, and there have been several large asking sizes in the pre-market. With
support at 40, this stock could head lower before its bounce. With old support
back at 37, look for an open or move below 36 1/2. Near-term support at 40 has
certainly been broken. The next clear support level is at 30.
HOT: SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating) is
trading roughly 3 points lower on average pre-market volume. Look for a support
band between 265 and 268. Remember, this stock has a wide average daily range.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,