Trending Higher
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 +.50, and the
Nasdaq futures are headed higher as well.
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. Don’t fight the trend, but watch for
reversals.
Heading Up (at the
open)
Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating) is trading up
roughly one point on light pre-market volume. The reason that it’s being
mentioned is that this move takes it out of a micro-cup which formed on Friday.
Look for potential resistance near 145 and 148. In a reversal, look for
potential support near 139 1/2 and again near 132. SCMR has a wide average daily
range.
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) is trading up 3 points
in the pre-market on strong volume. Look for potential trouble near 114, which
is near where it is currently trading. Should it move higher, there could
be a small resistance band from 115 1/2 to 116 3/4. In a reversal, look for
near-term support near 111 1/2.
Liberate Technologies
(
LBRT |
Quote |
Chart |
News |
PowerRating) looks to gap up
nearly 6 points. The next resistance levels are near 40 and 46, in between which
we saw a trading range for just over a week in late April and early May. In the
pre-market its trading just under 40, near 39 1/4, on strong volume.
Advanced Fibrecom
(
AFCI |
Quote |
Chart |
News |
PowerRating) is trading up 2
points, just over 60. There is a small resistance band between 61 and 62.
The next trouble spot is near 64. AFCI has traded higher for 3 days in a row. A
move above 64 may result in a low-level breakout on the daily charts as well.
Vertical Net
(
VERT |
Quote |
Chart |
News |
PowerRating) is trading up roughly 6
points on strong volume. The B2B sector is back in the spotlight. Look for
resistance near 57. If it can clear this point, look for trouble near the May 1
high, just over 59.
Internet Capital Groups
(
ICGE |
Quote |
Chart |
News |
PowerRating) has been in a
low-level consolidation for several months now. On Monday morning it’s getting
some attention in the pre-market and trading 2 points higher. Look for trouble
near 43 1/2.
Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) is trading up roughly 2 1/2
points on light pre-market volume. Look for resistance in an area from 169 to
170. It may also be forming a bigger-picture cup pattern.
Until later,