Wednesday, January 19, 2011

Watchers for the 1-20-11 trading session


Supernovae scan return. Volume still strong, so it might not be over. Box and drop or wait for decay. Ideal is a flat or barely green or red open, followed by a big move down on volume to short into. Avoid longs and big gaps, especially downward ones. Fade on morning panic or conventional confirmed weakness cues.


First red day Supernovae. Fell only a bit over 1% last time, so more down side might surface. The plan is to play for more reddening on day 2. Conditional entry. A flat, nominally green or red open that immediately sells off on heavy volume or sports traditional confirmed weakness cues is a fade entry. Keep flat on greening or strength. Avoid entries on big gaps up or down.


Consolidating pennant that nominally greened and might break up or down, depending on price action. Long on strong volume above 4.88 to 4.90 and short on heavy volume below 4.80 to 4.79ish. Tight range on this critical phase, when it blows it might be a worthwhile play, let us hope it is tomorrow. If not, keep it on watch for one.


Technical Supernovae up over 100% in 5, now 6 session. Still on watch after advancing over 9% today. See my analysis from last time, it mostly still applies. Volume is a bit higher, but nothing stellar. A gapper, but closed lower than the open, so it might be ripening soon. Short weakness, not strength, in most cases, as here.


Volume spike scan, nice momentum with 0.10 test at hand. Long on early strength/spiking, and a successful test of the above level with volume and acceleration. It might just be a green scalp if it does not conquer that level. Immediate dumping on volume or a fail at 0.10 is a possible short, as well, as are confirmed weakness cues like an early green to red or trading below the opening price, etc. That is more likely on a flat, nominally green or red open, than a big gap up or down, which I like to avoid playing.


Very nice break out today on heavy volume, possibly inspired by recent press releases. I would like an encore with early strength/spiking to long scalp into, possibly holding longer depending on how well it sustains its greening. Keep flat on early weakness or heavy volume selling. Possible early red to green long if it is a minimal gap. Avoid all big gaps. A gap up that immediately advances is an early long, but more likely a scalp.


Possible early red to green long, or immediate strength/spiking which can be long scalped. Equally possible is a gap up and crap to short scalp into. Already blogs like are suggesting to take profits, and it's over 3 after hours. Worse, Beacon Equity likes it now, so that cannot be good. So a dive at or near the bell is a fade entry, as would be conventional weakness cues. Live price action will determine this one. If it can hold 3 convincingly, the party might yet go on. The best set up will be the shorts on a fall back under it.

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