NTAP’ped Out
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
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.
It looks like
another choppy day in the markets. Have you ever noticed that when it rains it
pours? First it’s the economy, then it’s earnings, now it’s the presidential
race. What next? I’m sure that there will be something.
One To
Watch:
(
NTAP |
Quote |
Chart |
News |
PowerRating)
Network
Appliance
(
NTAP |
Quote |
Chart |
News |
PowerRating) closed just under its 200-day MA on Friday. After forming
a double-top pattern over the course of September and October, NTAP traded lower
and entered a consolidation pattern. On Thursday and Friday it broke down from
this consolidation and crossed the tape several million more times that normal.
Toward the close, it made one attempt at a relief rally and
retook its 200-day MA, but not long after the sellers returned and pushed it
lower, again on heavy volume. This type of activity suggests that there may be
continued weakness. The 10-minute chart from Friday, showed that there is
some support near 90, based on the consolidation that took place all day.
Watch for NTAP to provide another short opportunity based on a
breakdown below intraday support. Set your alerts near Friday’s low .