Software, Hard Shell
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”.
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Morning Outlook
The S&P futures are +6.75, and the
Nasdaq futures are headed higher 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. The jobs report from this morning showed
only 11,000 new jobs created last month. Analysts were expecting 260,000 new
jobs.
Heading Up (before
the open)
REVERSAL WATCH: Visual
Networks
(
VNWK |
Quote |
Chart |
News |
PowerRating) is bouncing a tiny bit following Thursday’s massacre. Watch
for a move below Thursday low for shorting opportunities. Wait for a move below
10, as this is both near the low and psychological support.Â
Vertex Pharmaceuticals
(
VRTX |
Quote |
Chart |
News |
PowerRating),
recently mentioned in Trading the Techs, looks to open at a new all-time high.
Watch for a move or open above 122 1/2, the intraday high from Thursday. There
is no upside resistance. In a reversal, look for near-term support near 120 3/4
and again near 116.
Peoplesoft
(
PSFT |
Quote |
Chart |
News |
PowerRating) is trading near
17 1/4 in the pre-market on strong volume. Watch for resistance near 18, the top
of the low-level base. A move above this level could signal a potential breakout
on the daily charts. If there is enough momentum to drive it higher, the next
resistance area is near 19 1/2. In a reversal, look for support near 15.
Moving Down (before
the open)
Qualcommm
(
QCOM |
Quote |
Chart |
News |
PowerRating) is trading down
over 4 points on strong pre-market volume. Look for support near 54 3/4, which
is where it first broke out several months ago. This opening price will be a
two-month low. In a reversal, look for trouble at 63, which is the top of its
near-term trading range.
Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating) is trading down
9 points from the close on very strong pre-market volume. Note that the
200-day MA is at 45 3/8, so if it opens below this level, consider it potential
resistance. As I write this article the price continues to move lower. Near-term
support was at 44, below which it may head down to 40 before bouncing. The
10-day MA at 43 7/16 may provide a bit of a bounce. In a reversal situation,
look for new resistance near 46 5/8.
Arrivederci,
Check back for Trading the Techs AM
at 11:30AM ET.