The Trend Is Your Friend

November 2, 2000
Dave Baker

Each morning this
list will contain those stocks with the potential to make a quick but tradable
move in the first hour.Â 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

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. Take note of the new Nasdaq 100, the NDX,
pre-market indicator.

The late-day
recovery in the Nasdaq Wednesday broke the intraday trendline. Look for this area to act
as a pivot point in a pullback.

The semiconductor index,
the SOX, tried to follow suit, depending on which trendline you use.

Otherwise, the 60-minute
Nasdaq Chart still shows resistance at 3400.

Stocks began to move
higher after the close on Wednesday thanks to some help from Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating),
which took the initiative to discuss part of its business plan on its websites.
Thanks regulation FD (fair disclosure).

Most of the big names made
significant recoveries in the after-market, and ideally, this will continue this
morning, despite any activity in the futures.

Research in Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating)
is a name to watch this morning. It broke the trendline that has been supporting
it for the third day in a row, but was able to recover by the close. The buyers
drove it higher in after hours on Wednesday, with a last print for 200
sharesÂ at 97. Look for resistance near 100, 104, and 111.