Monday, January 24, 2011

Watchers for the 1-25-11 trading session


First red day Supernovae. Finished unchanged 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, especially early. Avoid entries as a short on big gaps up or down, but down is probably worse.


See strategy and analysis for BLTI which this play resembles strongly, 1st red day Supernovae. Fell less than 3.5% so more down side could be in the cards. Printed the highest high in the run-up on a red daily candle.


Supernovae still maturing. Biggest volume yet, so it might not be done. If afraid, box and drop. Avoid trying to top fish. Chase bloody waters, not sharks. Big gaps again not ideal, especially as they tend to encourage top fishing. A fade on massive early sell dumps and confirmed weakness cues. Such plays often go on longer than is sane, but entering long now is a bit daring. Wait for the wheels to start coming off, then enter. No longs.


Up over 100% in several sessions, with paid promotion, supposedly. New hype over the weekend. It might not be done, especially with promoters behind it, so boxing and dropping is again a consideration. Not a huge volume gain, though. New high in the run-up printed today. A flat or nominally green or red open, with selling pressure on volume will do, but as usual, avoid big gaps, particularly downward. Morning panic or typical confirmed weakness cues are short entries. Avoid longs, wait for blood in the water. Be patient on this one.


See my comments from last time and of January 20 for this over extension play. These mostly still apply. Cannot go on much longer without a distribution day print. Keeps making new highs on lesser or mixed average volume, another sign to be confidently patient the day is soon at hand for the shorts, but be conservative, only fade weakness do not try to top fish short.


Nice immediate feedback type trade set up via the chart pattern. I like it. Long on 2.20 take and hold on volume with acceleration. A correction since January 11 wants to retest that recent high. Possible red to green long if it gaps down and tries to overtake those highs. A starter position can be used it continues to dump at open and then rebounds early. Keep flat on weakness, this could fail to break out but here I am flat on a fail.


Not new 52's as reported today by some, but more or less true as the real one way back nearly a year prior was an anomaly. Broke out of a fairly tight trading range convincingly with strong volume. Possible early red to green long. Possible long scalp on spiking up out of the bell or near that. Avoid shorts on weakness, keep flat on weak price action. Likely to head higher near term, be conservative to avoid being squeezed.

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