Where’s The Top?
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. The Nadsaq futures are currently +23 and the
S&Ps are +1.75.Â
It looks like
we are going to see a bounce in early trading on Friday, after the seeing the
Nasdaq close on its lows on Friday. Be prepared for a reversal pattern, as
Thursday also looked like it would be a positive day, until 10:30AM ET.
Foretelling the action in the Nasdaq was the SOX, which
formed a descending-triangle pattern over the course of the day.
Overseas, Alcatel
(
ALA |
Quote |
Chart |
News |
PowerRating) and STM Micro
(
STMM |
Quote |
Chart |
News |
PowerRating) traded
lower last night.
One To Watch:
(
AEOS |
Quote |
Chart |
News |
PowerRating)
One sector which has been rather hot of late is retail. Despite the slowing
economy, retail has been quite popular. Reflecting this positive sentiment is
American Eagle Outfitters
(
AEOS |
Quote |
Chart |
News |
PowerRating). The stock broke out to a new high on
Thursday on explosive relative volume. After consolidating once again, it
rallied out of the trading range and caught investors’ attention. As you can see
from the chart, AEOS has a history of consolidating before each move. Watch for
another bit of consolidation and another leg higher. Set your alerts near
Thursday’s intraday high and watch for a continuation move.
