Light Trade
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.
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Heading Up (at the
open)
Sonus
(
SONS |
Quote |
Chart |
News |
PowerRating) is trading up 10 points in the pre-market on light volume.
Watch for resistance at 214 1/2 and 220. In a reversal, look for support at 200
and 198.
Gemstar
(
GMST |
Quote |
Chart |
News |
PowerRating) is trading up 2 points on light volume. Watch for
resistance at 67 3/4 and 68 3/8. In a reversal, look for support at Monday’s
intraday high of 66.
Atmel
(
ATML |
Quote |
Chart |
News |
PowerRating) is trading up 1 point. Look for resistance near 31 1/2 and
32.
Redhat
(
RHAT |
Quote |
Chart |
News |
PowerRating) is trading up 2 points. There may be near-term resistance
at 25 and 26. The stock is moving out of a low-level cup pattern.
Moving Down (at the
open)
Network Appliance
(
NTAP |
Quote |
Chart |
News |
PowerRating) is trading down 7 points on heavy volume.Â
Look for support at 82 and 81 3/4.