Sunday, February 07, 2010

Watchers for the 2-8-10 trading session...

NXTH

This is my top watcher. A new promotional snail mailer is out which is probably an omen of the end being close at hand. Still, last time it went up for nearly a month before its spectacular 50%+ drop. If you like living dangerously, you can be long (with an eagle eye) early, but by this time it is ill advised, probably. Good luck finding shares, as this is probably going to be a dandy dump. It could fall hugely in a few hours, when it does.

AENY

This has tested key resistance @ 4.90 a few times, and each time, it has pulled back from the ceiling. If it does punch through that level on heavy volume, it could trip stops into the mid 5s, which makes for a momentum long. Less adventurous plays will be an intraday short scalp on another test and fail to break though those stops. As this shady stock could be halted at any minute, keep this one close to the vest.

SEED

Recently the stock took out support at 10 to the mid 9s, prompting some penny players like Cody http://twitter.com/codytrades to go short. It then fell under 9, which made it even more tempting, but it has been choppy and head fake prone. Good shorting potential still if we see some early weakness, hopefully leading to sustained, gradual red painting.

CNLG

Do not laugh, we could see another morning spike for a long scalp, as the beaten down recent high flyer has retraced a lot of its gains over several sessions now. I am not sure how many shorts are left who have not covered to contribute to such a possible move up, but you can be sure I will be watching this stock at open.

JYHW

Another retracer that has made up some ground in recent sessions, I do want to see if it can convincingly take out 1.52 on strong volume, which might be good for a quick scalp long. I will be watching this from the bell as it might at least hit 1.60 before running out of gas. It might finish green after a boring, slow move up, too.

TSHO

A Pinkie that might be running out of gas providing an easy short scalp, if its daily doji is any clue. Must retest 1.30+ on heavy volume to be a long. If it takes out the previous day's high of 1.38 I would not be short as that is also a 52 week peak price. Sure, it is a pumper, but there is still psychology involved regarding that.

PCYC

This keeps advancing gradually under the rader of most traders. It may have more room to run on Monday. The process has been pretty plain vanilla, so do not expect different price action come tomorrow. 

APKT

Earnings play real stock that might be a long continuation of the breakout that pulled back on lighter volume. What concerns me is the past ascending day lacked buy volume depth. If it takes out 14 north on strong volume, a long is in the cards.

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