Market Missed Its Wheaties
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
The S&P futures are flat.
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 and tracking
stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) futures or
tracking stock as leading indicators.
Heading Up
Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating) is being big at
175 1/2, 3 points above Monday’s close. Look for resistance at 181, 183, and 184
1/2. Should the stock pullback, look for a bounce off the 100-day MA at 171.
This MA was also Monday’s low.
Advanced Fibrecom
(
AFCI |
Quote |
Chart |
News |
PowerRating) continues
to move on the Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) news from Monday. It’s currently trading 1 1/8
higher at 59 1/2 on 10,000+ shares. Look for resistance at 64, 64 1/2, and again
at 67. The stock has been in a rolling pattern for the last few weeks.
HOT: JDS Unipase
(
JDSU |
Quote |
Chart |
News |
PowerRating)
is trading 1 point higher on 65,000+ shares. Look for support between 114-115
and resistance at Monday’s high of 119 3/8. The current bid and ask are crossed
at 116.
Ligand
(
LGND |
Quote |
Chart |
News |
PowerRating) Pharmaceuticals is
trading1 3/4 points higher on a new FDA drug approval. With the 50-day MA just
over 13 1/8, consider waiting for a move above this level before opening any
long positions. The next resistance point is roughly 13 1/2, so a more
conservative trader should consider waiting for a move above 13 3/4.
Moving Down
NBCi
(
NBCI |
Quote |
Chart |
News |
PowerRating) is
trading 8 points lower on several downgrades (and an upgrade) this morning. On
the daily charts you’ll notice a double bottom at 16, so consider
waiting for a move below this level before opening ynd short positions. Consider
waiting for a failed rally as a result of bottom fishing. Traders may also play
the bounce to the upside, which many people may be expecting.
Papa Johns
(
PZZA |
Quote |
Chart |
News |
PowerRating)
is trading near 17 in the pre-market on 15,000+ shares. The stock is trading
below all visible resistance on the daily and weekly charts. Those considering
short positions should watch the psychological levels of 15 and 10.
Harmonic
(
HLIT |
Quote |
Chart |
News |
PowerRating) is
trading near 36 3/4, with support 1/2 points below. The next support level
appears at 34 1/2, leaving room for a shorting opportunity on a breakdown.
Should the stock move below 34, use the weekly charts to find any further
support levels.
NYSE Movers
Solectron
(
SLR |
Quote |
Chart |
News |
PowerRating) and
AT&T
(
T |
Quote |
Chart |
News |
PowerRating)Â may move in early morning trading as well.
Check back for Trading the Techs AM at
11:00 AM ET.
Until later,