Pullback
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 -3.25 and the
Nasdaq futures are -30.00.
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.
The big names are pulling back a bit, which may do nothing more than provide
a healthy entry point. Watch for buyers to come in once again if this rally is
for real. While the financial news channel I listen to is calling this a down
day and saying that there is no follow through, I find that there is nothing
wrong with a bit of a pullback following Thursday’s significant rally.
Heading Up (at the
open)
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is trading up 6 points or 12% following its
stronger-than-expected earnings announcement. Watch for trouble at the 50-day
MA, just under 62.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading up 4 points. Look for resistance near 70
3/4 and 74. The stock has been trending higher since April. I’ll take a look at
it in Trading the Techs AM Friday.
Moving Down (at the
open)
Look for auto parts makers to move lower on a downgrade.
Ericsson
(
ERICY |
Quote |
Chart |
News |
PowerRating) is trading lower following its earnings announcement.
Watch for support at 10 pts. This is a very liquid stock, often making moves
less significant. So far, this news has not had a strong effect on the other
cellular phone makers.
After making significant moves on Thursday, several of the semis are pulling
back a bit, including Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) and Triquint
(
TQNT |
Quote |
Chart |
News |
PowerRating)
Exodus
(
EXDS |
Quote |
Chart |
News |
PowerRating) reported better-than-expected earnings and is trading down
5 points. It just does not seem logical. Nonetheless, look for support near 30.
On the NYSE, Coke
(
KO |
Quote |
Chart |
News |
PowerRating) may move a bit lower following an earnings release
and analysts reiterating a neutral rating.
Circuit City
(
CC |
Quote |
Chart |
News |
PowerRating) has warned and is likely to be weak near the open.