Monday, September 27, 2010

Watchers for the 9-28-10 trading session


Multiple wide gap ups indicates unusual strength. Rumor mill based optimism might be profit taken soon, but this could easily spike out of the gate tomorrow for a long scalp. I am more interested in the fade play on clear weakness cues. That will be later on in the day if it comes at all on Tuesday. Very bullish call option activity.


Looks like this might finally tire tomorrow, hopefully early so a fade play can be entered on confirmed weakness cues. A bit like REE except later in its life cycle, so it might be closer to an entry for the shorts.


Daily doji print on the re-pump might finally give way to some distribution tomorrow, if the dumpers arrive. Short on clear weakness cues only, avoid longs, and if you can get a good fast fill, even a morning panic might do to sell into. Everything depends on the bigger hands. If they lighten up with conviction Tuesday, fade it. As I said last time, check the spam on it tonight and all day tomorrow for clues as to your odds as a short.


This is a long on a take and hold with volume and acceleration of 3.90+ and even more so on a successful 4 test. It is a short on failed challenges to those levels, particularly the 3.90 area. This play is less than ideal because the price correction from 3.90 which previously printed on 9/8/10 is less than a month old. Since this could go either way, live price action probably early tomorrow, will determine which side of the fence to sit.


Classic breakout upwards from sideways movement for months. Great volume, too. That is the good news. The bad news is that this is a China related stock, notoriously unreliable for investment purposes! I suspect we will see early spiking for a long scalp. I am open minded, though. If this begins to get profit taken with clear weakness cues, it could be faded as well. The chart pattern sees this as a long only, the source of the equity makes it more complicated, as I noted. Watch early live price action for fence sitting clues here.

Not a lot of good plays to choose from...again. Read my comments on this situation for the past few days for advice on such situations.

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