NAPM Could Wap’em
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 -0.80 and the
Nasdaq futures are – 9.00.
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 and tracking
stock (QQQ) futures or
tracking stock as leading indicators.
Few stocks are making serious moves in
the pre-market because everyone is waiting for the NAPM number at 10:00 AM ET.
Look for this number to move the market.
Heading Up (at the
open)
Onyx Pharma
(
ONXX |
Quote |
Chart |
News |
PowerRating) is trading up 5 points on strong volume. Although it
is trading near 15 in the pre-market, use caution, because there is resistance
right around this price. It looks to open above all of the major MAs, and the
next resistance is just under 16 3/4.
Priceline
(
PCLN |
Quote |
Chart |
News |
PowerRating) is trading up 2 points near 25 1/2 on over 100,000
shares. There may be some resistance near this level, where we find the
25-day MA. Look for more resistance near 26 1/4 and 28. In a reversal, watch for
short opportunities under 22 5/8.
Red Hat
(
RHAT |
Quote |
Chart |
News |
PowerRating) is trading up 2 points and there is some resistance at
20. The daily chart is filled with different MAs ranging from 20 to 25 3/8. Each
of these prices has the potential to cause a problem. Traders should also
be watching for a move below the May lows.Â
ValueVision
(
VVTV |
Quote |
Chart |
News |
PowerRating) is trading up over 2 points, as it bounces off its
lows set on Monday. Watch for resistance near 20, at the 20-day MA. The high
volume move on Friday may have been a sign of either a new downtrend or of
capitulation. We won’t know until more time passes. For now, watch for a move
below 14 and a move above 25.Â
Intuit
(
INTU |
Quote |
Chart |
News |
PowerRating) is trading up roughly 2 points on light volume. The chart
shows somewhat of a rolling pattern. The 10-day MA is at 36 1/8 and the 50-day
is just under 38 1/4. Resistance points are hard to determine due to the
choppiness of the chart. When a stock is in a rolling pattern, it’s important to
watch for trouble at most opening and closing points below the top and low of the
pattern.
Ditech
(
DITC |
Quote |
Chart |
News |
PowerRating) is bouncing today in the pre-market on strong volume.
Watch for resistance at 50. Above this level, there is no near-term resistance
until the 50-day MA at 58 3/8. If the stock cannot stay above 50, watch
for a reversal and a short opportunity.
Moving Down (at the
open)
Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating) is trading near
28, down 4 points, on strong volume. This move may signal a breakdown on
the daily charts. There is no near-term support below, but there may be
resistance near 30-30 1/2 in a reversal situation.
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