Leftovers
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
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.
The NYSE TICK chart shows just how much people were buying and selling on
Monday. Note the move toward 800, which could be considered quite an extreme
level, as well as a good intraday shorting opportunity. I like to set
alerts at -300 and +300 on the TICK intraday, to give me a feel for the
ultra-near-term (aka next 10 minutes) direction of the market. Noteworthy.
It appears
that 3200 is a key pivot point in the Nasdaq. After rallying back above this
level toward the close on Monday, it was unable to hold, and closed 8 points
lower. Watch for resistance/support near this area, depending on the open.
This morning, I am going to take a look at several key intraday
levels from Monday, which may affect stocks this morning (Tuesday).
One name that the whole world is watching is Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating).
Cisco closed under 50 for the first time in ages. Before you take something grim
out of this, note that the so-called gurus first said that 60 was a key level,
then 55, and then 50. What I can tell you, is that based on Monday’s chart,
there are some very short-term resistance levels forming. Cisco’s fall on Monday
can also be attributed to the downgrade it received.
Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating) failed to hold its intraday
support level from Monday as well. It fell quickly into the close. Look for the
area that I have highlighted below, as well as 60, to act as pivot points.
Until later,
David Baker
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