Leftovers For Breakfast
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
Watch for follow through from Monday’s
rally. The S&P futures are up slightly, the Dow futures are -12.00 and the
Nasdaq futures at +25.00. Bonds are trading a few ticks lower. Watch for a move in the first 10-30 minutes of trading. Keep an eye
on the stocks that gap the most in the morning. Use the Nasdaq futures as a
leading indicator.
Keep in mind that the Nadsaq Composite
broke out of a consolidation on Monday. Everyone is looking for a continuation.
Heading Up
Engage
(
ENGA |
Quote |
Chart |
News |
PowerRating) is trading near 18
on roughly 150,000 shares. There appears to be a resistance band between 18 1/4
and 19, so we may only see scalping opportunities in early trading. On a
pullback, Engage may have support just over 16 1/2, where the 10-day and 20-day
MAs are converging.
Digital Island
(
ISLD |
Quote |
Chart |
News |
PowerRating) is trading
just over 39 on 370,000+ shares. There’s a bit of resistance at 39 1/2 and again
at 40 3/4. Above this level, look for hot spots at 41 3/4 and then again at 44
1/2. There are few near-term resistance levels, so we’ll have to watch for
carryover from April.
HOT: Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating)
is definitely a flavor of the month. It’s currently trading almost 20 points
higher than where is closed on over 210,000 shares. Look for resistance at 166
5/8 and 168. With so much morning action, we may see a bit of profit taking near
the open. If momentum continues, look for resistance again at 170 and 171.
Redhat
(
RHAT |
Quote |
Chart |
News |
PowerRating) is trading at 26 on
71,000+ shares. Look for resistance at 28 1/2 and 30. Note that this stock has a
thin average daily range, thus we will not look for a large move.
Both SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating) and
(
JDSU |
Quote |
Chart |
News |
PowerRating)
are trading slightly lower after rallying on Monday. Because of the momentum
SDLI has shown, shorting appears to be too risky.
Moving Down
Gadzoox
(
ZOOX |
Quote |
Chart |
News |
PowerRating) is taking another
hit after Monday’s pummeling. It’s trading near 13 on almost 150,000 shares.
Because this is an all time low, the only support that we can expect to see is
at 10, a psychologically important level.
NYSE Movers
Seagrams
(
VO |
Quote |
Chart |
News |
PowerRating) is trading lower on
Instinet as a result of the buyout announcement.
Micron Electronics
(
MUEI |
Quote |
Chart |
News |
PowerRating)
announced earning’s Monday, as well as Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating)
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,