Watchers for the 7-28-10 trading session

IDSA

Still on watch for over extension, this one may finally ripen on Wednesday if all goes according to plan. Volume still is decent, but this is getting ever more due for a distribution day of at least an acceptable amount to fade. The only thing to do here is to watch it like a hawk for weakness to short into.

NYMX

Still looking to fade this on weakness, the biotech stock has held up well enough from last time, but keep an eye on it. Most over extensions just take patience to time by watching for days, then pouncing on aggressive selling by jumping in when they begin to dump, usually near the open on "the day", etc.

PTSC

News catalyst perhaps, but this cheapie is on watch for a fade entry. I hesitate to include this yet given the volume situation, which has yet to subside, but you may be able to play this both ways tomorrow. Early as a long on spiking from the bell, and then as a short on diminishing momentum. Be careful with this one.

BKYI

This hod closer may yield a gap and crap. You might be in this long if you caught it on scans near the close, playing for a gap and profits, but the fade entry may await as soon as tomorrow. Short into profit taking.

MBCI

Another cancer positive trial results mover, these are often fade bait if you can short into spikes on the second day or so that begin to be sold off, preferably early on. Even when the news is good and legit, such dumps are common on big moving stocks with this kind of storyline. Be aware that being squeezed is more likely as well on such setups, at least short term. You have to time it more precisely. This makes it a higher risk candidate.

CMIN

Now being actively promoted, additional spiking will make this an attractive short. Volume is still there, so I suggest patience. As usual, short weakness if you can. Ideally we get a strong move from the bell and a dive in the first 2.5 hours, or no fade entry will be possible. I see a red day of some verve in the next few days. Do not try to force matters, it may not happen tomorrow. All you can do is wait for aggressive selling to begin.

Not on my official list, but interesting is DNN which took and held 1.40+ today. This is a long breakout continuation on a pullback entry to near 1.40 if it holds on a test of that new floor. I would not buy it at higher prices. A more ideal pattern for this type of entry is SKPI but that is impractical as the gain today is too high to expect a full retreat and bounce off a floor of about 0.35 to actually present itself.


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