Voting For Cisco
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
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.
Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) moved up and down following the earnings announcement. After it
closed at 55 1/8, I watched it quickly trade down to 53 and then back up to 56
1/2’ish in a matter of minutes. In the 15 minutes between now and the open, it’s
likely to move even more.
You can bet
that all of the big names are moving this morning.
The intraday
Nasdaq futures chart from Monday shows trouble at the 3400 level. As well, breakdown at the close from the intraday consolidation also created resistance
at 3333.00. The next resistance spots are at 3350, and near the top of the
trading range.
One To
Watch:
(
ORCL |
Quote |
Chart |
News |
PowerRating)
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating)
traded back to its lows on Monday after gapping back above support in the
morning. It dwindled lower throughout the day and by the close had moved back
below support. It did bounce off the new support level set last Thursday on the
high-volume attempted reversal. Of course, that move was news-driven, which is
always a factor.
Based on this price pattern, we will monitor this name for a
short. You may also note the downtrend that the daily chart has been hitting
since October.
The intraday charts from Monday show the resistance that formed
on the breakdown below 29. After bouncing intraday, Oracle attempted to retake
this support level after bottoming around 11:30AM, but was unable to muster up
enough strength. By the close, it moved back below 28 to close there. In after
hours, the final prints that I saw were at 28, but of course, this has already
changed a bit and could change more before the open.
