Never Satisfied
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 -3.60 and the
Nasdaq futures are -48.00.
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.
It does not matter if a company meets or beats earnings expectations, people
are looking for any reason to sell. On the other hand, everyone is looking for
signs of capitulation, and the more bad news we see, the more likely it is to occur. Either that, or at this rate stocks are going to zero, which
is highly unlikely.
Moving Down (at the
open)
Applied Micro Circuits
(
AMCC |
Quote |
Chart |
News |
PowerRating) is trading down 10 points on light volume.
It closed on the 50-day MA on Tuesday after breaking it intraday. Watch for
support near 160 to 161. Thanks to the wide range, you’ll want to watch your
five-minute charts for a bounce.
Cellular phone companies are likely to be weaker on Motorola’s
(
MOT |
Quote |
Chart |
News |
PowerRating)
earnings warning.
Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) beat the Street by one cent and people are selling it off.
It’s currently trading down 12 points on very strong volume. There is no
near-term support in sight.
Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) is trading below 50 at 49 on strong volume. This is a name
that everyone is watching very closely. Look to see if the buyers come to the
rescue on any major market reversal.