Little Bounce
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 +5.00 and the
Nasdaq futures are -27.00.
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.
Heading Up (at the
open)
Read-Rite
(
RDRT |
Quote |
Chart |
News |
PowerRating) is trading up 2
points on very strong pre-market volume. Watch for resistance near 9 1/2, which
is the near-term high. The current ADX reading is almost 45, and the stock has
been in an uptrend for two months.
Nextel
(
NXTL |
Quote |
Chart |
News |
PowerRating) is trading up 4
points on strong volume. Watch for resistance at 54 3/8, 55 1/4 and 56 3/4. The
50-day MA and 200-day MA are about to converge near 58 5/8. In a reversal, look
for support near 52 1/2 and just under 52.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading up
2 points on average pre-market volume. After Wednesday’s big down day, it was
bound to bounce a little. Watch for resistance at 66. The 200-day is at
68.375. If it turns around, look for support near 63 1/2 and 62 3/4.
Moving Down (at the
open)
Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating), which I mentioned in
Wednesday’s Trading the Techs, is trading down 2 points to 110 on strong volume.
Look for support near this level and 109 3/4. If it heads lower, it will be
moving below the low of its near-term trading range, perhaps offering a
bigger-picture shorting opportunity.