Heading North
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 Nasdaq futures are currently +45 points and the S&P futures are
+8.00 points, suggesting a strong open.
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 futures or
tracking stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) as
leading indicators.
Heading Up:
(
VERT |
Quote |
Chart |
News |
PowerRating),
(
MPPP |
Quote |
Chart |
News |
PowerRating),
(
CTXS |
Quote |
Chart |
News |
PowerRating),
(
SDLI |
Quote |
Chart |
News |
PowerRating),
(
RMBS |
Quote |
Chart |
News |
PowerRating),
(
LVLT |
Quote |
Chart |
News |
PowerRating),
(
MSTR |
Quote |
Chart |
News |
PowerRating),
(
CKFR |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating)
Vertical Net
(
VERT |
Quote |
Chart |
News |
PowerRating) opened higher
on Thursday only to die throughout the day, but it’s going for a second round on
Friday. The 50-day MA ,at 44 15/16, so traders will want to wait for a move
above 45 1/8 before considering long positions. The next resistance levels are
45 3/4, 47, and 50.
MP3.com
(
MPPP |
Quote |
Chart |
News |
PowerRating) is trading 5 points
above Thursday’s close on strong volume. If it can move above 22 1/8,
look for resistance at just under 23 1/8, 24 1/8, and 25. When searching
for resistance, look at the weekly charts and draw your trendlines.
Citrix
(
CTXS |
Quote |
Chart |
News |
PowerRating) may be moving on the
Microsoft news. Its trading near 53 3/4 in the pre-market. Look for resistance
near 55, 56 (50-day MA), and 57 3/8 (200-day MA). Note that the 50-day and
200-day MAs are converging, with the 50-day crossing to the downside. This may
cause pressure on the stock.
WebMD
(
HLTH |
Quote |
Chart |
News |
PowerRating) is trading near 19 in
the pre-market. The 50-day MA is currently at 18 7/8, so this morning momentum
may be enough to finally push it through this key resistance level. Look
for resistance at 20 3/8 and at 21 9/16. There may be some pressure at 19
11/16, where an intraday high was set several weeks ago.
HOT: SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating)
is still the flavor of the week. Since it’s trading so close to its all-time
high, you will want to focus on resistance at the intraday and closing highs set
on each of the last four sessions. These levels include 260, 262, and 268.
HOT: Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating)
shows signs of resistance at 238. Since it’s currently trading near 237 1/2, it
would be safest to wait for a move above resistance before considering opening a
position. Above this level it may see turnaround points near 240, 242, 245, 246,
and 248. Each of these prices has been either a closing or intraday top in the
last two months.
Level 3 Communication
(
LVLT |
Quote |
Chart |
News |
PowerRating) is
trading 2 points higher, but on less that 1,000 shares. Unless there is very
strong volume at the open, there may not be enough momentum to back any move in
this stock.
Microstrategy
(
MSTR |
Quote |
Chart |
News |
PowerRating) is trading
roughly 5 points higher than Thursday’s close. Look for resistance at 49 3/4,
50, 53, 55, and again at 57 1/4.
Checkfree
(
CKFR |
Quote |
Chart |
News |
PowerRating) is trading
roughly 3 points higher on 5,000+ shares.Look for resistance at 52, 52 7/8, and
54. If it can move above 56, it could run to 60, the 200-day MA, before
stopping. It all depends on the momentum.
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) is in the
still hot chip group, which explains its heavy pre-market trading. Consider
waiting for a move above 96 before going long. Watch for resistance at 97 and
again at 100.
Going Down:.Momentum
is up, so go with the flow.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,