Strong Words
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 +.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 and tracking
stock (QQQ) futures or
tracking stock as leading indicators.
A famous Internet analyst is moving the stocks in
this group this morning.
Heading Up (at the
open)
Barnes and Noble.com
(
BNBN |
Quote |
Chart |
News |
PowerRating) is trading up 1
3/4 on strong volume near 5, which is resistance. Watch for resistance at 5 1/8
and 5 1/2. Scalpers will want to watch this stock. The 20-day MA is just under 5
1/2, which may cause a problem. BNBN has been trending downward for months and
is moving on an analyst announcements.Â
Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) is trading up 1 point after
gapping high on Friday. Look for resistance at 69 and 70. The stock has been in
a low-level basing pattern for several weeks and has two key resistance points
at 73 3/4 and 76.The gap down on April 14 has held it down for some time now. In
a reversal watch for support near 68.
Sanmina
(
SANM |
Quote |
Chart |
News |
PowerRating) is trading up roughly 5
points near 103. Watch for resistance near the all-time high of 103 3/4. The
stock has been tracing out a cup pattern since its during its recent pullback.
In a reversal, look for support near 100.
Cree
(
CREE |
Quote |
Chart |
News |
PowerRating) has had a rough ride in the last
two weeks but it continues to bounce on Monday. It’s trading near 105 on light
volume. Watch for resistance near Friday’s high of 105 and near 108 1/8. In a
reversal, look for support near 102 and 100.
Moving Down (at the
open)
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is trading down over 3 1/2
points near 47 on 59,000+ shares. Watch for support at 46, 45, and 43 1/2. If
momentum really carries the stock lower, watch for a break of 43 1/2 to have a
serious affect, as that is the recent low. In a reversal situation, look for
resistance at 47 3/4, 48 3/4, and 50 3/4.
Veritas
(
VRTS |
Quote |
Chart |
News |
PowerRating) is trading down roughly 3 1/2
points near 108 1/2. Support may appear near 108 and 105 3/4. The 200-day MA is
not far off at 103 3/4. This pre-market move breaks a trendline which started
back in April. In a reversal, there may be resistance near 109 and 110.
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