Earnings Deathwish II
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 -4.00.
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 and tracking
stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) futures or
tracking stock as leading indicators. Earnings are moving some of the big names
today.
Go with the trend. The market is headed
lower. With many stocks moving on earnings reactions, take advantage of the
whipsaw, don’t get caught up in it.
Moving Down (at the
open) – WATCH FOR REVERSALS
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) is moving lower
following the recent earnings announcement. It’s been in a trading range for
several weeks now, so it may find support near 76 3/4. Otherwise, watch for a
potential gap filling down to 75 1/2.Â
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading down 8
points from the close on Tuesday. Watch for potential support just over 92, as
well as in a band from 88 to 90. In a reversal situation, watch for resistance
at 100. Rambus has an interesting price chart. It’s filled with gap
openings.Â
B2B is headed lower.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading
down 9 points near 57 3/4. It’s currently trading near the top of a former
trading range, which could act as support. If this level fails to hold, it may
not find support until 52. Should it reverse, watch for resistance in a band
from 60 to 61.
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) is trading down 3
points, but is still in its trading range from 120 1/2 to 130 1/2. Â
VerticalNet
(
VERT |
Quote |
Chart |
News |
PowerRating) is trading down
3 points, or 5%, as well. Watch for support near 54, which is the high of the
day prior to the gap. In a reversal, resistance could pop up near 59 1/4.Â
Veritas
(
VRTS |
Quote |
Chart |
News |
PowerRating) is trading down
over 12 points on strong volume. Look for minor support at 112 and more
significant near-term support near 107. In a reversal, watch for the 50-day MA
to cause problems. Should it bounce near 107, it may form a rolling pattern on
the daily charts.
Foundry Networks
(
FDRY |
Quote |
Chart |
News |
PowerRating) is trading
down 20+ points. Watch for a bounce just over 100, where we see both
technical and psychological support. In a reversal, look for resistance to the
upside near 107 1/2, 110, and 111 3/4.
Others
Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) announced a split, look
for it to move.
Check back for Trading the Techs AM at
11:30 AM ET.
Until later,