Light Downpour
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 -2.30 and the Nasdaq futures are -17. 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
futures and tracking stock as leading indicators.
Going Up
Ameritrade
(
AMTD |
Quote |
Chart |
News |
PowerRating) is trading
up 3 points on strong pre-market volume. In a reversal, look for
support near 20 to 20 1/2. Otherwise, watch for resistance near
22 and 22 3/4.
Applied Imaging
(
AICX |
Quote |
Chart |
News |
PowerRating) is
trading up 2 points on strong volume. Watch for resistance near 7
1/4 and 7 1/2. Look for support near 5, if the stock reverses.
Specifically, scalpers may want to watch this one.
Heading
South
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is trading down another 1
1/4 after Tuesday’s strong downward move. It bounced off the 50-day
MA on Tuesday, so it should provide support again on Wednesday.
Look for overhead resistance near Tuesday’s close.
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) is trading
down 2 points on average pre-market volume. Look for support near
the 50-day MA and 20-day MA, which look to converge on Wednesday.
If it trades under this level, watch for another bounce just over
80 1/2. The stock has been in a downtrend for some time now.
There may be resistance along the downtrending line from the
April highs. I will take a look at this trend in “Trading the
Techs AM.”
ASM Lithography
(
ASML |
Quote |
Chart |
News |
PowerRating) is trading down
2 points on good pre-market volume. The stock has been quite
choppy in the last three months, so determining support and
resistance levels is a bit tough. Look for support near the 20-day
MA at 38 1/2. If it reverses, the 200-day MA may cause trouble
just over 40. Both of these averages have been stopping points in
terms of stock movement.