Wednesday, February 09, 2011

Watchers for the 2-10-11 trading session


New Supernovae scan return. Up over 100% over 5 straight days by Wednesday. Volume lessening, so it might pop tomorrow or Friday. 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 big gaps, especially downward ones. Fade on morning panic or conventional confirmed weakness cues. No obvious news or promotion catalyst on this Pinkie stinkie. Rose just over 9% today so the rise has been a bit more measured.


Once again, see my comments dating back all the way to last Friday, little has changed. Volume on the buy side keeps fading on the choppy, whipsawing Supernovae that seems to go sideways in mid air for an eternity. Impatient shorts have torn their hair out over this one, but it should make a nice short on the fall day. Warnings signs for impending doom have flashed the past few days. Should finally pop tomorrow or Friday.


See my comments from last time, they mostly still apply. This is because after a first red day Tuesday, the Supernovae scan return finished unchanged to the previous session close today, so we have a do over on tap. Buy volume is ever weakening, so hopefully we get some gravy tomorrow or Friday for the shorts.


Most of my comments from last time on this second up day Supernovae scan return still apply, so see the post last night for entry strategy details. One thing that has changed is longs are bit too daring at this point. I would remain flat on early strength/greening, even on spike scalp up. This is going to be a worthy short soon enough.


Nicely broke 2 today. Up after hours. If this sells off at or near the bell, I will be looking for a reversal in the form of an early red to green which can be longed. Not into a short here. If it sports consistently weak price action, I am flat. Or on morning panic style dumping ditto. Also a long scalp on spiking up at or near the gun. Key here will be how this reacts on a test of 2 from above, as a fall below is an exit stop or flat cue for longs.


Earnings surprise beat revenue estimates and made new 52's today. Short term, yearly high equities tend to go up even more, and so do expectation beating stocks. Here, the stock gapped way up and sold off heavily from the highs after a bit of opening upside. Tomorrow, a possible early red to green long awaits. Keep flat on consistently weak price action or heavy dumping from or near the bell. If some late arriving longs come in, it might spike up at or close to the gun for a long scalp. Also a day trade long on a flat or nominally green debut that consistently trades above the opening price level after the initial useless 5 minute noise candle.


Another new 52's, this one is down after hours, and if it holds at the price I saw that means a great immediate feedback type of situation. Not a short. The key is how this reacts to a 3 test. It sits on that now in the post market session. We will not have to wait for a pull back from today's close to test it if it opens on it. If 3 holds and only if it does we might have long entry. On spiking up from or near the bell a long scalp. Keep flat on clear weakness or a failure to hold 3. If in a long and it falls back under, consider bailing below 2.80 or so. A possible early red to green long, more likely on a flat or nominally positive open, is another likely scenario.


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