Killed In Its Sleep
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 (fair value
is -3.72) and the
Nasdaq futures are +2.50.
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.
Today the market decided to give traders a lesson on the risks of holding a
stock overnight.
Heading Up (at the
open)
Sun Micro
(
SUNW |
Quote |
Chart |
News |
PowerRating) is bouncing about 2 points after Thursday’s intraday
decline and flat close. Look for resistance near 113 1/2 and at the 50-day MA of
116 5/8.Â
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) is bouncing about 3 points as it trades near 200
in the pre-market. Watch for resistance near 205 and 211.
Watch for positive action in Clear Channel
(
CCU |
Quote |
Chart |
News |
PowerRating) as brokers race to
defend the stock
Moving Down (at the
open)
Veeco Instruments
(
VECO |
Quote |
Chart |
News |
PowerRating) is trading down about 40 points on an earnings
warning. Watch for support near 63 and 61 1/2. Watch a combination of level II
and time and sales screens to spot reversal opportunities in the early morning.
There may be a sharp bounce.
Priceline.com
(
PCLN |
Quote |
Chart |
News |
PowerRating) continues to release bad news. It is trading down
once again. There is no near-term support based on technical indicators, but
there may be some psychological support at 5. Scalpers should watch this one.
Concord Communications
(
CCRD |
Quote |
Chart |
News |
PowerRating) is trading down roughly 50% on light
volume. Once again, thre is no near-term support, as this is a new 52-week low.
As for resistance, it’s about 10 points to the upside. Watch for psychologicals
upport at 10.
Razorfish
(
RAZF |
Quote |
Chart |
News |
PowerRating) is being punished for 3 points on an earnings warning
as well.
Holding overnight can truly be dangerous.