Earnings Deathwish III
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 +1.80 and the
Nasdaq futures are +23.00.
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.
Heading Up (at the
open)
Palm
(
PALM |
Quote |
Chart |
News |
PowerRating) is trading up 3 points on an upgrade this morning. Look for
support to form in a reversal near 40, should it hold up for a while. The next
resistance point is at 44.
VA Linux
(
LNUX |
Quote |
Chart |
News |
PowerRating) is trading up 8 points on light volume. This move takes
it to the top of its four-month base. There is resistance near 45 and 47. The
50-day MA is now far off at 37. LNUX has been trading lower since its IPO.Â
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) is breaking out of its trading range this morning. Look for
support near 145, in a reversal. Look for resistance at 150 and 155.
Moving Down (at the
open)
Next Level Communications
(
NXTV |
Quote |
Chart |
News |
PowerRating) did not split last night, rather, it’s
trading down about 42 points to just under 50. The volume is quite strong too.
Look for support at 48, 47, and 46. If it cannot hold any of these levels, then
it could really head lower. There may be an initial bounce early in the morning.
Bausch and Lomb
(
BOL |
Quote |
Chart |
News |
PowerRating) is going to open much lower. Although we are not
getting pre-market quotes, the news of weak earnings will move it downward.
Cysive
(
CYSV |
Quote |
Chart |
News |
PowerRating) is trading down 50%. There is no technical support below
this level, but there may be psychological support at 5.