Kaboom!
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 +1.50, and the
Nasdaq futures are +11.00.
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.
Let’s also take a quick look at the Dow Jones, which is stuck in a short-term
trading range.
Words from a major market analyst
may move us lower this morning.
Heading Up (at the
open)
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading up 6 1/2 points on
very strong volume. Look for resistance near 85 and 86 3/4. In a turnaround,
watch for support near the 50-day MA at 83.
SAVVIS Communications
(
SVVS |
Quote |
Chart |
News |
PowerRating) is trading up
to 11 on light volume. This move over the 50-day MA may provide some
opportunities for scalpers, as there is much overhead supply in the stock.
Moving Down (at the
open)
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is trading down 3 points on
very strong volume. Look for support near 62 and 61, which is the recent low
from mid-July. Below these levels, it may see 59.
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) is trading down 2 points on
strong volume. Watch for support near 35. Below this level, there is only minor
support from many months ago on the weekly charts.
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) is trading down 2 points on
strong volume. Look for support near 75 and 71. It broke below the 50-day MA on
Tuesday. With the futures weak this morning, it may head lower. Use caution.