Watchers for the 9-29-10 trading session

NPD

Now this is getting a bit overdone. Careful though, volume still increasing, but the high wave stick print relative to the close is a good sign of waning upward momentum. It tested 4.50+ and nearly hit 5 before closing at 4.28 today. I look to fade more failures at those levels but the best case scenario would be for a nominally green or flat open and a quick dump to short into. I always prefer clear weakness cues to enter on, if possible. In this case, early strength/spiking out of the gate is entirely possible first. Such moves could be long scalped, I guess, but here I am more looking to patiently fade the over extension.

MOTR

Also over extending, this one has printed increasing volume on each of the recent up days, so be careful. Fade on confirmed weakness cues, or be flat. This is not up tons so it might not be done yet. Just patiently stalk it.

PGI

Like MOTR this one is over extending, so I am looking to fade it on confirmed weakness cues, staying flat otherwise. The difference is the not so stellar volume on the rise, which keep making new price highs, though. As such, if it begins to weaken, I like the odds better for the shorts here than on the aforementioned play.

HDY

Closed on hod. Nice familiar chart pattern, a rare early strength/spiking long scalp entry possible if the breakout continues from the ascending triangle like consolidation over the course of September. If it holds up, it might be held for a longer day trade. I would be flat if it weakened, I do not see this as a prime short.

CGC

New 52's. In play both ways now, live price action will be your guide. Short term, new yearly highs usually go a bit further north. Here, 2 big up days will have a profit taking element as well. Possible early red to green long or spike scalp long out of the gate. Naturally, any profit taking, which is more likely on a nominal green open or a flat debut, is a fade entry if it shows clear weakness, like trading below the opening price and also the previous session close, etc. Volume still strong, but lessening.

HNR

See the comments for CGC as they mostly apply here on this new 52 week high equity. Strong volume, and unlike CGC it is growing, which bodes better for the bulls than on the previous stock. In play both ways, though, see my comments for CGC above. Live price action will determine which side of the fence to sit.


The blog has a terms of service. Be sure to read it at:


http://traderbigt.blogspot.com/2010/02/please-read-my-terms-of-service-i.html