04-05-2008, 01:03 PM
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New trading members
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Join Date: Mar 2008
Location: Central Coast of Calif.
Posts: 27
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I have a little ritual I do each morning before the open.
I go to www.briefing.com . and select the "calendars" tab, then "upgrades/downgrades". What I look for here are stocks that have been upgraded and are opening right into resistance. These setups are potential shorting opportunities for me. I also do the reverse for potential buying opportunities.
Then I go to "earnings calendar". During earnings season, I make sure and check this section as well. If a stock reports good earnings before the open and it opens at a price level where price resistance is much higher, you can consider buying it. If, however, that same stock gaps up right into a resistance level on a good report, I may want to consider fading the gap and going short. Conversely, you can do the same the other way.
The second place I go is to . Then, I go to "extended trading" tab, then to "Pre-Market Heat Map". This list all of the Nasdaq 100 symbols in one box, it shows me pre-market which stocks are gapping up and down the most. I look at the top two rows and the bottom two rows as these show us the stocks that are most "out of balance" at the open. I enter these symbols into two watch lists that is good for that day, named "Down" and "Up". What I'm looking for primarily are gaps to fade. I go through the top two rows and find stocks gapping up strong and right into resistance for shorts near the open. I go through the bottom two rows and find stocks that are gapping down strong and right into support for longs near the open.
Ken, feel free to edit my posts and only put in the relevant parts, I do get long winded as I really love trading.
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