Trade With The Tape
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 -8.00.
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.
Heading Up (at the
open)
Intermediate Communications
(
ICIX |
Quote |
Chart |
News |
PowerRating)
is trading up 11 points on very strong volume. It closed just over the 50-day MA
on Friday. The stock has been in a strong downtrend since setting a high in
March. Look for resistance near 36 and 37. With this type of surge, some traders
may consider fading the open, because the futures are weak.
Next Level Communications
(
NXTV |
Quote |
Chart |
News |
PowerRating)
is bouncing a tiny bit again, 1 1/2 points, on light volume in the pre-market.
The stock has been consolidating near its lows since the gap down two weeks ago.
Look for resistance near 45 1/2 and 51 5/8. The bottom of the trading range near 40 1/8. This may be another good stock to watch for a morning reversal.
Moving Down (at the
open)
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is trading down 2 1/2
points on very strong volume on a downgrade. Look for support near 71 and
resistance near 72 1/4 in a reversal. The stock has been stuck in a trading
range since it broke out to a new high two weeks ago. If the market is strong,
this leader should turn.
Applied Micro Circuits
(
AMCC |
Quote |
Chart |
News |
PowerRating) is
trading down 8 points on light pre-market volume. The stock rallied to a
new high on Friday, but reversed intraday. Watch for support near 194. As for
resistance, each high from last week may cause a problem.
Intersil Holding
(
ISIL |
Quote |
Chart |
News |
PowerRating) is trading
down about 1 point, but may reverse on positive news. Watch for support at the
50-day MA of 52 1/8, and resistance near 55 1/2 and 56 5/8.
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