Monday, September 06, 2010

Watchers for the 9-7-10 trading session


Anyone following my blog long term knows I love this chart pattern. A cup correction of prices reasonably steep, with the return to test the high point in about a month or 2. Here, on July 26, we hit 1.40 and faded. Now we are back, hitting 1.41 on Friday and closing at 1.38 for a perfect setup. If we open flat or slightly below, a test and take/hold on volume and acceleration above 1.41 is a long, while a failed test of 1.40ish is a short play. This level is also at new 52's so if we take it out decisively more upside awaits. If not, the profit taking might be even more vigorous than on a normal key technical level fail. I just hope we avoid big gaps!


My oh my! Nice bullish price action, which, however, I want to fade on its rapidly over extending moves. Closed on hod. Overnight bulls are hoping for a gap up and profits. I am hoping for weakness cues to short.


Might need more seasoning, but working on over extension. 3 ish is a natural profit taking zone psychologically, and it failed to build upon that area on Friday. Short weakness cues only, or another failed test of the 3 level. Remember patient stalking and conditional entries are the name of this game.


Still going, and I am still waiting to fade this on weakness cues. Stubborn oil and metal miner startup stock, but eventually profits will have to be taken. See the above sage advice about patient stalking!


An incher. Reeking of promotion, the game is to wait for the huge red day as a short that awaits us once the front loading scum cut fish bait, usually without warning at some odd time in the session. A bit late to be long safely.


Closing on the hod, this one was a classic EOD gap up and profits hopeful for optimistic bulls. I look to fade weakness cues once the profit taking begins. See my comments about patience and stalking, they apply.


Nice technical resistance at around 1.40 here. If we take this out and hold it with volume and acceleration, more upside is possible. Short failed tests of the same level. Ideally, we open flat or nominally below to get our test. Big gap downs or ups are not a good thing on plays like this.


Still waiting for that elusive profit taking day. The trouble with playing over extensions on stocks that do not have several huge green candle days in the run up is that it can go on unduly, testing the patience of the stalker, as is the case here! Fade weakness cues only.


Daily near doji print. We may finally see some profit taking if all goes right on Tuesday. Fade weakness cues only or be flat here.

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