Taking Out The Core?
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 -7.00 and the
Nasdaq futures are -51.00.
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.
FYI: Apple Computer has actually rebounded since last
night. Watch for a reversal early in the morning.
Heading Up (at the
open)
Maxtor
(
MXTR |
Quote |
Chart |
News |
PowerRating) is trading up 3 points on strong volume.
Look for resistance at 11 5/8 and 12 1/4. Support may appear back at 10 and 9.
This is a scalper’s stock.
Moving Down (at the
open)
Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating) looks to open with a greater than 40% haircut.
Consider for watching a long opportunity on a strong bounce off the lows. Use a
combination of level II and time and sales reports to strategize. This is what
Apple looked like at the close on Thursday.
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) is trading down 1/2
points on strong volume, perhaps in sympathy with Apple. Look for a bounce at 31
7/8 and 31 1/2. A move below this level may offer a short opportunity. The ADX
reading is currently 32, with a downward bias. Do not forget to watch for a
reversal though.
Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating) is moving lower as well,
roughly 5 points. The move yesterday looked completed a nice rally out of a
pullback, but it does not look to open with follow through. Watch for a 50%
retracement of Thursday’s move. The pre-market action is light.
3Com
(
COMS |
Quote |
Chart |
News |
PowerRating) is poised to open down 1/2
point. COMS gapped higher on Wednesday following its earnings announcement and
traded higher on Thursday. The bids are currently thicker than the offer,
perhaps suggesting an early morning reversal. With a reasonbly sized seller just
under 18, consider waiting for a move above Thursday’s intraday low before
taking a long position. On the short side, there may be support at the gap
level.