Mixed Signals
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 -2.50 and the
Nasdaq futures are -11.50.
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)
Priceline.com
(
PCLN |
Quote |
Chart |
News |
PowerRating) is trading up 1 3/4. Watch for resistance at the 50-day MA of
29 7/8. The stock has been in a low-level consolidation for several months.
Digital Lightwave
(
DIGL |
Quote |
Chart |
News |
PowerRating) is trading up almost 3 points to 76 1/2. This may be
nothing more than a short-term bounce, but only time will tell. It closed right
over support on Friday, after moving lower on strong volume. Watch for
resistance near 78 1/4.
Next Level Communications
(
NXTV |
Quote |
Chart |
News |
PowerRating) is trading up 5 points to roughly 62. Look for
resistance near 63 1/4 and 64 1/2.
Moving Down (at the
open)
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) is trading down 3 points to roughly 195. Look for
support near 192 and 189 1/2. The stock has a large average daily range, so
support and resistance can be somewhat far apart.