Ring…Ring…
Morning Outlook
The S&P futures are +2.50.
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 strength this morning in the
wireless groups as well as other telecom subgroups. Look to play the strongest
groups.
Heading Up (at the
open)
JDS Uniphase is trading up over 2
points on strong volume. It’s scheduled to be added to the S&P 500 this
week. Watch for potential resistance near 137 5/8, Friday’s intraday high, and
140 and 142.Â
Voicestream
(
VSTR |
Quote |
Chart |
News |
PowerRating) is trading up
over 3 points. Look for resistance near 153, which has been a short-term top. In
a reversal situation, support may be found near 150 and 149 1/4. VSTR has been
in a trading range for the last five days. Volume has been accelerating and it
has been announced that Deutsche Telekom will be buying VSTR.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading up
almost 2 points. On the upside, watch for resistance near 55, 57 1/2 and 59 1/2
to 60. Commerce One has been in a low-level basing pattern for the last few
weeks.
Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating) is trading up a
little over a point on average volume. Broadvision has been in a trading range
for the last two weeks. Watch for upside resistance near 44 and again at 46. In
a reversal, support may be found in a band from 39 1/2 to 40.Â
Nextel
(
NXTL |
Quote |
Chart |
News |
PowerRating) bounced off the
bottom of its trading range in the pre-market. Watch for resistance in a band
from 72 to 73. Look for a breakout of the trading range to provide a trading
opportunity at any point during the day, not just during the first hour.
Brocade
(
BRCD |
Quote |
Chart |
News |
PowerRating) pushed over 200
this morning in the pre-market on 13,800+ shares. Should it be able to clear
202, look for more upside resistance near 206. In a reversal, if 200 does not
now serve as support, watch for at 195 and 191.
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) is likely to move on
news, as well as Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) which is being talked about by a big brokerage
this morning.
Moving Down (at the
open)
Ericsson
(
ERICY |
Quote |
Chart |
News |
PowerRating) surged lower on very strong volume on Friday and is
trading a bit lower this morning. Pre-market volume is average. Watch for a
continuation move on Monday to take out Friday’s intraday low.