Here, Kitty Kitty
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 +8.00 and the
Nasdaq futures are +61.00.
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.
With the market acting weak, watch for
a potential fading opportunity.
Heading Up (at the
open)
Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) is trading up 5 points. Watch for resistance at 130 and
134. In a reversal, look for minor support at 120 7/16.
VerticalNet
(
VERT |
Quote |
Chart |
News |
PowerRating) is bouncing 3 points from Tuesday’s close on heavy
volume. Watch for resistance at 34 7/8, 37, and 39. The stock is in a low-level
formation with much overhead supply. The stock was defended by Lehman Bros
today.
3Com
(
COMS |
Quote |
Chart |
News |
PowerRating) is trading up 3 points following Tuesday’s after-the-bell
earnings announcement. While it will go over its 50-day MA, it may still have
trouble at 17 1/2 and 17 7/8. The most recent high was set at 19.
Moving Down (at the
open)
Priceline.com
(
PCLN |
Quote |
Chart |
News |
PowerRating) is bucking the trend and moving down 7 points on
very strong volume, over three million shares. There is no near-term support,
but there may be some buyers at the psychologically important 10.
Lernout and Hauspie
(
LHSP |
Quote |
Chart |
News |
PowerRating) is trading down 2 points on average pre-market
volume. Look for support at 11 1/2. The stock has been in a low-level
consolidation for the last four days.
Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.