Riding Piggy-Back
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.
Those which are
consistent morning movers with large average daily ranges are now highlighted by
the word “Hot”.
Morning Outlook
The S&P futures are -1.25, and the
Nasdaq futures are headed lower as well.
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,
Heading Up (at the
open)
NEWS-DRIVEN MOVE: SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating)
moving up for the same reason that JDSU is moving down. It’s currently trading
near 333 on very strong volume. There is no overhead resistance at this point,
and the only near-term support is at the 52-week high, at 315 1/8.Â
Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) is bouncing between
174 and 176 in the pre-market. Look for resistance just under 175 1/2, where it
had trouble two out of the last three days. Above that level, there’s no
chart-based resistance until 180, but you should look for pauses and reversals
at each point move to the upside. In a reversal situation, watch for a bounce
near 170 to 171.
Sycamore Systems
(
SCMR |
Quote |
Chart |
News |
PowerRating) is trading
near 131 1/2 on over 94,000 shares. SCMR closed at the high of the day on Friday
on strong volume as well. Watch out for a resistance band between 134 and 135.
As with any sharp move, keep an eye out for reversals in the first hour of
trading.
Foundry Networks
(
FDRY |
Quote |
Chart |
News |
PowerRating) is trading
higher after breaking out of a trading range on Friday. Look for resistance near
124 and just over 126. In a reversal, you’ll want to keep an eye out for support
near Friday’s intraday high of 119 13/16, as well as at 115 (psychological
near-term support).
I’ll be taking a look at Foundry in
Trading the Techs AM.
Moving Down (at the
open)
NEWS-DRIVEN MOVE: JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) is trading near 100,
below its 50-day MA, on very strong pre-market volume. Look for psychological
support near 100. This move fills the gap from June 1. If it continues lower,
look for some support at 96 and again at 90. Watch for morning reversals a well.
Don’t be surprised if this big name turns around quite quickly. JDSU announced
its intentions to buy SDLI for $41B this morning.
Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating) is trading lower again. It’s currently trading under
40, just below the next near-term support level. Look for support at 39 and
again just over 35. It’s now trading below all of the major MAs. Look for upside
resistance at the 200-day MA, near 45. BVSN moved lowed on news on Friday.
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) is trading just under 115, below Friday’s intraday low. If
you consider this a potential short, you’ll want to watch for a bounce at 113,
112, and 111, each of which has been a near-term intraday low. Yahoo traded
lower on strong volume on Friday.
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