Sunday, September 26, 2010

Watchers for the 9-27-10 trading session


Finally showing signs of weakening, this closed green but lower than it opened. Many big up days means the profit taking looms, but volume still printed strong on Friday, so be patient, only fading confirmed weakness cues or remaining flat.


Gaps up in successive candles indicate some strength, but clearly over extension looms here. Volume, while higher than normal, is not breathtaking. A mild daily increase has occurred during the past 3 big up sessions. Fade on confirmed weakness cues only or be flat. Up after hours, perhaps an entry early Monday will arise.


Another stock working on over extension but still with strong though slightly declining volume, I look to fade this on clear weakness cues, stay flat otherwise. Closed modestly off the highs, so Monday might be it but do not count on it. As I always say, most of this game is inactive stalking and waiting for a chance to chase the ambulance.


Allegedly being re-pumped, this one got dumped a few sessions ago but rose nearly 43% on Friday after a big day on Thursday, so it sits even higher than before the dump. The million dollar question is how much promotion has it received over this weekend and what will that mean for Monday? Short on confirmed weakness cues or insane early or from bell spiking. Stay flat otherwise. I do not trust promotion fed longs, as I never know when the drop is coming, and it often does without warning and very fast. A fast check of the spam shows this in 7 newsletters, but not a ton of promotion over the weekend that is obvious. Keep checking for new spam while monitoring this trash.

MGQG mentioned this in the past hour. We have already had a run up on it recently, and now it has received a new lease on life and is higher than ever. Short on clear weakness cues or be flat. I want to see if the latest spam will spike this higher out of the gate, I suspect it might. A hod closer, the volume on the latest rise has been astonishingly light, giving us more hope for a reliable short once the faltering begins.


This choppy junk closed barely red on Friday. Be careful, lots of eager beaver shorts have been squeezed on it in the run up that has been going on for the better part of a month. Fade on confirmed weakness cues, stay flat otherwise. If it seems like it is giving a cue signal for entry, I would scale in with at most half of my intended position, to make bailing easier if it fakes us out again. Long overdue for a decent distribution day.

Again, not a lot of great plays that are truly premium. Do not force trades out of boredom. Some weeks tons of plays come up on scan, and on others it is pretty thin. Patience is required to trade only the best set ups while ignoring the mediocre ones. You can only take what the market gives you...

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