Old Faithful
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 -1.60 and the
Nasdaq futures are +64.00.
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.
The market is moving on the heels of
the Cisco announcement.
Heading Up (at the
open)
Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) pleased the
Street with its earnings last night. It’s trading up a little over 3 points.
Watch for resistance at 69 3/4 and 71. In a reversal, look for support near 67.
Redback Networks
(
RBAK |
Quote |
Chart |
News |
PowerRating) is trading
up roughly 7 points on over 40,000 shares in the pre-market. Watch for
resistance at 152 1/2 and 155. In a reversal, support may appear at 150.
Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating) is trading up 4
points on light volume. Look for resistance at 153 7/8 and at the 200-day MA at
156 3/4. In a reversal, we could see support at 150 and 148.
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) is trading
up 10 points on over 60,000 shares. It’s been forming a cup-with-handle pattern
on the daily charts. The 20-day MA was just crossed to the upside again on
Tuesday when it broke 154. Look for resistance at 169 1/2 and 174. The
all-time high is 181 1/4, but is still 14 points away.
PMC Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) is trading up 7
points in the pre-market. Watch for resistance just over 216 1/2, 220, and 222.
In a reversal, look for support near 207.