Scalping Party
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 -1.40 and the
Nasdaq futures are -12.00.
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.
Many of the lesser-known low-priced
stocks are moving. Scalpers are going to have a field day.
Heading Up (at the
open)
Next Level Communications
(
NXTV |
Quote |
Chart |
News |
PowerRating)
is bouncing after Thursday’s greater-than-50% haircut. Watch for
resistance at 47. Should it head south, look for a break of 39 3/8, which was
Thursday’s low.
Scalpers should watch Calypte
Biomedical
(
CALY |
Quote |
Chart |
News |
PowerRating), which is trading up 300% to 4 1/2 on very strong volume.
Watch for resistance near 4 1/2 and 6.
Moving Down (at the
open)
Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating) is having
another rough day. It’s trading down roughly 7 points to 151 1/2. Look for
support at 150 3/4 and 150. The key level is definitely 150 3/4, because that is
the top of the high-level cup that it formed through July and August. The next
support level is near 141 3/4. This move is also a follow up on Thursday’s break
of the near-term uptrend. In a reversal, look for resistance near Thursday’s
intraday low.
Puma
(
PUMA |
Quote |
Chart |
News |
PowerRating) hit its 50-day MA on
Thursday and closed just under it. On Friday it’s trading down roughly 1 1/4
points on light volume. Look for resistance again at the 50-day MA and support
near 22 1/4 and 20.
Razorfish
(
RAZF |
Quote |
Chart |
News |
PowerRating) is trading down 4
points on heavy volume. Look for support near 10. In a reversal situation, there
may be resistance at 12 1/4 and 14.
Crossroads Systems
(
CRDS |
Quote |
Chart |
News |
PowerRating)
continues to suffer as it trades down another 3 points. Look for support near 7
1/4 and 6 1/2. In a reversal, watch for resistance near10 and 10 1/2.
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