Starting Lower
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 +1.30 and the
Nasdaq futures are -11.50.
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 tracking
stock (QQQ)
or futures as leading indicators.
Heading Up (at the
open)
MMC Networks
(
MMCN |
Quote |
Chart |
News |
PowerRating) is trading up roughly 25 points to a new all-time
high. There is no overhead resistance, and the first support level is, well, 25
points lower.
Accelerated Networks
(
ACCL |
Quote |
Chart |
News |
PowerRating) is trading up 5 points to 25 9/16.Â
Look for resistance near 26, and 28 5/8, as well as at the 50-day MA of 33 1/4.
In a reversal, you may find support at 20 and 18 3/8.
Moving Down (at the
open)
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) is trading down 5 points, just under its 50-day MA of 129
5/8. Look for support near 126 and 123 1/4, which is the low of its trading
range.
Amazon
(
AMZN |
Quote |
Chart |
News |
PowerRating) is trading for 1 3/4 to roughly 38 1/4. Look for support
near 36 7/8, at the 50-day MA. The stock has been consolidating near its lows
for some time now. In a reversal, look for resistance near 39 3/8.
Applied Micro Circuits
(
AMCC |
Quote |
Chart |
News |
PowerRating) is trading down roughly 12 9/16 to 176.
Look for support near 174.