Sneaky Market
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 -19.00.
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.
Many techs are moving up, despite the
negative move in the futures markets. This could be an indication of many
reversals to come.
Heading Up (at the
open)
Power One
(
PWER |
Quote |
Chart |
News |
PowerRating) is trading up 4 points on light pre-market volume, near
114. Watch for resistance near 121, which was the top of a former trading
range. If it cannot clear 114 1/2 in early trading, watch for a reversal, where
it may find support at 110.
Sapient
(
SAPE |
Quote |
Chart |
News |
PowerRating) is trading up 8 points on light volume. It’s poised to
open above the 50-day MA of 108 3/8. Watch for resistance at the 20-day MA of
114 7/8. The first resistance point is just under 112, which is just over where
it is trading in the pre-market. If it can’t clear this level, watch for a
reversal. In a reversal situation, watch for a bounce at the 50-day MA and at
106.
Xylinx
(
XLNX |
Quote |
Chart |
News |
PowerRating) is moving on announcements and upgrades. It’s trading up 1
1/2 points on light volume. The stock has been in a trading range for the last 8
days. Watch for resistance at 75 and 80 and support at 71 and 70. The 200-day MA
is at 63 1/2 and the 5-day MA is at 82 7/8.
Moving Down (at the
open)
Globespan
(
GSPN |
Quote |
Chart |
News |
PowerRating) is trading down 6
points near 98 on strong pre-market volume. It closed below on support line on
Tuesday and is gapping lower. Look for support near 95 1/2 and 92 1/2. In a
reversal, watch for resistance at 98 3/4, 100, and 104.
Tollgrade Communications
(
TLGD |
Quote |
Chart |
News |
PowerRating) is
trading down 3 points on very light volume. Look for support near 80, 77 1/2 and
75. In a reversal, watch for resistance at 83 1/4 and 87.
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