EC Aye Aye Aye
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 +3.00, Dow futures
are +12.00 and the
Nasdaq futures are -9.00.
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.
The early morning futures action suggests that we will see a weakness in both
the Naz and S&P.
But, following the announcement of the ECI, the futures have been trending
lower and several stocks have given up their gains.
Moving (at the
open)
Many of the big names seem to be bouncing in the pre-market. Of course, it
only takes a few minutes for all of that to change. Look for upside moves in
both the semis and the networks, after Wednesday’s sharp decline.
On the upside, watch Infospace
(
INSP |
Quote |
Chart |
News |
PowerRating), Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating), Lycos
(
LCOS |
Quote |
Chart |
News |
PowerRating),
and Rare Medium
(
RRRR |
Quote |
Chart |
News |
PowerRating).
Several stocks which have reversed in the pre-market include SDL
(
SDLI |
Quote |
Chart |
News |
PowerRating),
now down between 8 and 10, Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating), Applied Micro
(
AMCC |
Quote |
Chart |
News |
PowerRating), and
PMC Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating). Worldcom
(
WCOM |
Quote |
Chart |
News |
PowerRating) is trading down roughly 1 3/4
points, but this stock can often be difficult to trade. It is very liquid and
the bids and offers are often both very thick, leading to limited moves. JDS
Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) and Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) are also headed lower, the
latter being for 2.5% in the pre-market.
Weighing both sides, there appears to be more weakness than strength. As I
write this, I am watching the futures move lower and lower.
In earnings news, keep an eye on the hospital companies. This group has been
outperforming the market as investors seek a defensive area. Some names include
Wellpoint
(
WLP |
Quote |
Chart |
News |
PowerRating), which reports after the bell, and Lifepoint
(
LPNT |
Quote |
Chart |
News |
PowerRating).
Oil stocks are likely to move on the news out of Iraq.