The Little Guys
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 +1.50 and the
Nasdaq futures are +11.00.
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.
Today’s the big day. Hopefully we will see some volume pick up after the
announcement. Beware of a knee-jerk reaction. All eyes are truly on the Fed.
Primarily lower priced stocks are moving today. The first hour may be a scalpers’
market.
Heading Up (at the
open)
DSL.net
(
DSLN |
Quote |
Chart |
News |
PowerRating) is trading up 100% to 6 1/2. Look for resistance at
the 50-day MA at 7.
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is trading up 1 point to 87 3/4 on light volume. This move
fills the gap from mid-July and takes it over the 50-day MA. Watch for
resistance at 86 1/8 and near 90.
Commerce One
(
CMRC |
Quote |
Chart |
News |
PowerRating) is trading up 1 point over 50, but it is still trapped
in its trading range. Look for resistance right here and support near 49 3/4.
Watch for a breakout from the range.
Moving Down (at the
open)
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) is trading down 2 points, but still remains in its trading
range. Look for support near 125 3/4 and 123. The low of the trading range is
roughly 122 and the high is 136 3/4. The 50-day MA serves as the middle line.
Mercator
(
MCTR |
Quote |
Chart |
News |
PowerRating) is trading down 3 points to 12 1/3 on strong pre-market
volume. There is no support underneath this level except for the psychologically
important 10.
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