Nothing Exciting Yet
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 +0.10 and
the Nasdaq futures are -26.00. 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.
There is little movement in the
pre-market this morning.
Heading Up (at the
open)
Rhythms Netconnections
(
RTHM |
Quote |
Chart |
News |
PowerRating) is
trading up over 1 1/4 on strong pre-market volume. The 20-day MA is at 14 3/8 and
the 50-day is at 15 1/8. Watch for resistance at 13 7/8 as well. In a reversal,
support may appear near 12 7/8. The stock hit an all-time low on Friday.
Siebel Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating) is trading
up 6 points near 170 on light volume. The 20-day MA is at 162 1/2. Watch for
resistance at 170 1/4 and 174 1/4. The stock recently came off an all-time high.
If it reverses and heads lower it may trace out a head-and-shoulders pattern on
the daily charts. In a reversal, look for support at 169 3/4.
Northpoint Communications
(
NPNT |
Quote |
Chart |
News |
PowerRating)
is trading up roughly 1 1/2 points on strong pre-market volume. Watch for
resistance at 18 and 18 3/4. The stock gapped higher Monday morning and is trading
slightly higher during the day. NPNT has recently come off its lows.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading up
roughly 1 point on less than 100,000 shares. The 20-day MA is at 51 1/4. Watch
for resistance near 52 3/8 and 55. In a reversal, look for support at 50 and at
the 50-day MA at 48 1/4.
Moving Down (at the
open)
Lernout and Hauspie
(
LHSP |
Quote |
Chart |
News |
PowerRating) is
trading down roughly 9 points. The 20-day MA is just under 33 1/2. A key support
level can be found at 28 1/2, so if it opens below this point, there will be no
near-term support. In a reversal, look for 28 1/2 to act as resistance, as well
as 30. LHSP closed on the 200-day MA on Monday. There is currently a large
Instinet buy order at 27 1/2 of 12,000+ shares.
Sonus Networks
(
SONS |
Quote |
Chart |
News |
PowerRating) is trading
down 3 points, slightly off its high. In a reversal, watch for a move above 261
1/8 to offer long opportunities. It’s formed a cup pattern over the near-term.
Look for weakness in the pharmaceutical
group.