I See Living People
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.
NOTE: INDUSTRIAL
PRODUCTION NUMBERS ARE DUE OUT AT 9:15AM ET AND MAY QUICKLY CAUSE A SENTIMENT
CHANGE, RESULTING IN A STRONG MOVE UP OR DOWN AT THE OPEN.
Morning Outlook
The Industrial Production numbers
are not out yet. The S&P futures are positive while the Nasdaq futures
are negative.
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.
Heading Up
Conexant
(
CNXT |
Quote |
Chart |
News |
PowerRating) was given a price
target of 100 this morning, so of course the buyers are coming in. It’s
currently trading on strong volume near 46. Look for resistance at 47, 47 5/8,
and 48 1/2. If you’re curious why I’m giving resistance points so close
together, it’s because when trading the first hour, every small pressure point
counts. If the buyers come in force, look for a move to 50 and then to 51. Watch
the 50-day MA at 49 7/8.
Rare Medium
(
RRRR |
Quote |
Chart |
News |
PowerRating) is trading at
22 1/4, over its 50-day MA, on strong volume. With the first resistance spot at
22 1/2, consider waiting for a move above this level before opening any long
positions. Above this level, look for resistance at 24 and 25 1/2. On a
pullback, look for support at 19 1/2.
VISX
(
VISX |
Quote |
Chart |
News |
PowerRating) broke out of what
seems to be the world’s longest consolidation. It’s currently trading at 27 with
resistance overhead at 28 1/8 and 29 1/2. Wednesday’s volume was nothing
special, so there may be only light follow through.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is trading near 127
1/4. Look for resistance just under 129 and 130. When trading a bellwether like
this one, it’s often useful to watch the semiconductor index
(
$SOX |
Quote |
Chart |
News |
PowerRating) as
well.
Moving Down
Digital River
(
DRIV |
Quote |
Chart |
News |
PowerRating) is trading
under 10, which was a support level. After Wednesday’s strong move down, many
traders were probably expecting a bounce, but it looks like it’s not going to
occur at the open. Look for 10 to now become resistance. At this point, there is
not clearly visible support on the charts. If you open a position in DRIV, use a
tight stop.
IDT Corporation
(
IDTC |
Quote |
Chart |
News |
PowerRating) is trading
near 29 on 40,000+ shares. Look for support at 28 and 27 1/8. On a strong move
south, watch the 50-day MA at 25 7/8.
Open Market
(
OMKT |
Quote |
Chart |
News |
PowerRating) is trading near
15 1/4 on roughly 20,000 shares. It’s trading under its 200-day MA of 16 5/8.
There appears to be minor support at each whole number: 14, 13, and 12.
Microstrategy
(
MSTR |
Quote |
Chart |
News |
PowerRating) is trading
near 38 1/2. Look for support at 37 1/5 and 36, based on the near-term price
activity.
HOT: Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating)
is trading near 57, but had support at 57 1/2. If the stock is trading above
this level at the open, then it may be headed higher. As always the volume in
the pre-market is strong. There is support at 55 1/2 and 54 1/4. On a reversal,
look for resistance at 59, 60, and 62.
Yesterday’s Split
Announcements
(
ADCT |
Quote |
Chart |
News |
PowerRating),
(
CERT |
Quote |
Chart |
News |
PowerRating),
(
TGT |
Quote |
Chart |
News |
PowerRating),
(
DIO |
Quote |
Chart |
News |
PowerRating)
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,