Watch Closely
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 flat and the
Nasdaq futures are -26.00.
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.
Watch for a reversal to lead to opportunities in some of the big-name stocks
which are trading lower. While Dell’s pre-announcement may hurt the market a bit
in early trading, there is other news to drive it higher, such as the news from
Micron, which was positive.
Keep an eye on some of the stocks that rebounded yesterday like AMCC, EXTR,
and other names which have come under pressure recently. Keep your eye on the
Level II screens and time and sales screens to get a feel for the change in
direction.
Heading Up (at the
open)
Look for action in the major alternative fuel source stocks, like Fuel Cell
(
FCEL |
Quote |
Chart |
News |
PowerRating)
and Ballard Power
(
BLDP |
Quote |
Chart |
News |
PowerRating).
Moving Down (at the
open)
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) is trading down 2 1/2 points on strong volume. This is a new
52-week low, thus there is no underlying support. Watch for a bounce in early
morning trading, ad the stock has already come a bit off its lows.
Harmonic
(
HLIT |
Quote |
Chart |
News |
PowerRating) is trading down 8 points to 14. Just like Dell, this is
a new 52-week low, and there is no underlying support.
Priceline
(
PCLN |
Quote |
Chart |
News |
PowerRating) is the most active stock this morning. It’s trading at
a new low as well, down at $7 per share.