Use The News
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
Keep an eye
on the stocks that gap the most in the morning. Use the Nasdaq tracking
stock (QQQ)
or futures as leading indicators.
The Nadsaq 100 closed right near a key support level on Friday.
Remember that the early morning action in the futures is likely
not to be indicative of what is going to happen later in the day. Make a
watchlist of the most active stocks and watch for reversals in the early
morning.
Friday’s most actives on the Nasdaq were made up of a mix of the
regulars, CSCO, DELL, MSFT, SUNW, ORCL, and some other names, including NXTL and SCMR.
Veeco Instruments
(
VECO |
Quote |
Chart |
News |
PowerRating) is also likely to see some early
morning excitement, as the news of the earnings warning had the weekend to
spread throughout the world. Friday’s early morning gap down offered a great
daytrading opportunity on the buy side.
Sometimes, you can combine news with technicals to take
advantage of exaggerated moves.
In the earnings warning
category, look for weakness in Pro Staff
(
PSTF |
Quote |
Chart |
News |
PowerRating), J.C. Penney
(
JCP |
Quote |
Chart |
News |
PowerRating), and
Free Shop.com
(
FSHP |
Quote |
Chart |
News |
PowerRating).
Lastly, keep an eye on
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), which, combined with being in the weak semi
group, is now a target of the Department of Justice.