If The Shoo Fits… Sell it
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 S&P futures are flat.
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.
Daily Insight
Support and resistance
are not exact points, rather areas (or bands) where a stock or future may pause
or turn around.
Heading Up
General Magic
(
GMGC |
Quote |
Chart |
News |
PowerRating) is trading
near 7 1/8, the near-term high. With resistance at 7 1/4, consider waiting for a
move above this level. The next resistance spot is at 8 3/4, and then 10.
Lycos
(
LCOS |
Quote |
Chart |
News |
PowerRating) is trading at 57 1/2,
near Wednesday’s intraday high. If it moves above 57 3/4, look for resistance at
58 7/8. The stock has fallen roughly 16 points in the last four days. Note the
convergence of two MAs near 61, which may cause upside trouble. It bounced off
the 50-day MA on Wednesday at 53 7/8, but did dip lower intraday. If it
continues to fall, look for some support just under 52.
Burr-brown
(
BBRC |
Quote |
Chart |
News |
PowerRating) is moving on
news that Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) will be buying it out. It’s currently
trading at 103 1/2 on very strong volume. There is no overhead resistance, but
check the terms of the deal to get more information regarding a buyout price.
Redhat
(
RHAT |
Quote |
Chart |
News |
PowerRating) is moving up another
point in the pre-market. After breaking out of a near-term trading range on
Tuesday, Redhat moved up 9 points on an intraday basis. If it opens above 32,
look for resistance at 33 1/8 and 34 7/8.
Cell Genesys
(
CEGE |
Quote |
Chart |
News |
PowerRating) is trading 3
points higher on 53,500+ shares. Look for resistance at 32 and 34
1/4. With the biotechs back in the news, we may see some momentum in the
coming days.
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) is still moving
after Wednesday’s surge. Look for resistance at 82 1/4. If there’s enough
momentum, look for a move toward 85. Always keep an eye on the news regarding
the trial when trading Microsoft. Don’t forget that there’s a Microsoft news
conference today.
Tibco
(
TIBX |
Quote |
Chart |
News |
PowerRating) is trading near 87
1/4. Look for resistance at 90 and in an area from 94 to 94 3/4. A move above 95
will take it out of a near-term trading range.
Moving Down
Steve Madden
(
SHOO |
Quote |
Chart |
News |
PowerRating)
has been cut by more than 60% in the pre-market, on a news-driven move. If it
moves below 5, look for some support near 4, based on the weekly charts.
Otherwise, look for scalping opportunities as sellers fight the bottom-fishers.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,