No Backing

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 +6.50 and the
Nasdaq futures are +60.00. 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.

Use caution and watch for reversals as
many of the pre-market moves are on light volume.

Heading Up (at the
open)

Juniper Networks (JNPR)
is trading up 5 points on average volume. Watch for resistance near 205, 210,
and 211. Look for potential support near 202 and 200.

Rambus (RMBS)
is trading up 2 1/4 points on light volume. It broke out of one trading range on
Wednesday, but still may have resistance at 86, 87 1/4, and 90.

PMC Sierra (PMCS)
is trading up 4 points on light volume. IT could see a bit of trouble near 212,
216, and 220. It looks poised to gap over the 50-day MA of 210 1/2.

Amazon (AMZN)
is trading up 2 points on an upgrade, with a new target of $75. AMZN is in a
low-level consolidation pattern with a great deal of resistance overhead. There
may be some trouble roughly every 2 points it moves. 

Conexant (CNXT)
is trading up almost 9 points on very strong volume. The company is splitting
into two divisions. CNXT has been in a low-level consolidation pattern for
several months as well. These patterns generate a great deal of resistance. Look
for trouble near 47 and 50, to start.

Moving Down (at the
open)

Colgate (CL)
may move on earnings warnings and downgrades.