Tuesday, February 01, 2011

Watchers for the 2-2-11 trading session


New Supernovae scan return. News catalyst. First green day with strong volume, 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 big gaps, especially downward ones. Fade on morning panic or conventional confirmed weakness cues. This one was so strongly accumulated today we might see some more "me too" buyers at or very near the open to long scalp into on a spike, on day two. Bolt at the first sign of stalling.


Red floater scan return. Idea is to play for more down side if it surfaces. Look for the usual morning panic to fade into as a scalp, or any of our typical confirmed weakness cues. Avoid big gaps, especially down ones. Easiest will be a flat or nominally up or down open, followed by a clear move down to go red or trade consistently under the opening price level. No longs. Keep flat on sustained greening. Clearly a conditional entry. Biggest volume yet, new highs on daily doji print. Looks like momentum is dying out but be vigilant.


Readers of my blog know I seldom trade stocks of this price, and on the NYSE but this is an exception. Positive response to earnings and new 52's. No run up, which bodes well for longs. Best day for greens was today, as always, but day 2 might have some free gravy. A bit down after hours, an early red to green long is possible. Avoid shorts and keep flat on consistently weak price action. Taking and holding 17 is also a long, but riskier than waiting for it to trade over the previous close. Long scalp on spiking up at or near the gun.


Being accused of fraud by the Feds is one thing, and usually a lasting kiss of death. Being called out by a blog, any blog, is another. SeekingAlpha see: http://seekingalpha.com/user/790526/instablog did a number on this stock today. Down more after hours, it is going to be in play tomorrow possibly both ways. More panic might follow from the gun to long scalp into on spikes down at or near the bell. Depending on how it holds up, if it is just even distribution it might be held longer than a scalp. So, confirmed weakness cues are a fade as well. Also possible is a backfire bounce up from bargain hunters who think the blog post is overly harsh. Remember what you think matters little, only the herd matters. A long scalp would be possible on spikes up at or near the bell. I would be holding a long less time than a short. My instinct is we see a red finish again. One thing to fear for shorts is if between after hours and premarket the dumping peaks to price it in before the bell.


Possible early red to green long. It might open down a bit or up and fall initially, then move back green for the entry. No shorts, this is an earnings reaction catalyst. Keep flat on sustained weak price action. It should be able to consistently trade over 7.50 for a play to work. Possible scalp long on spiking up at or near the bell. Also a long on steady trading above the opening price level.


New 52's. Short term these usually power higher. Earnings release today helped the rise. No great run up so that is a plus, too. No shorts. Ideally this has little trouble trading over 8.50 consistently. A bit like SIMO except for the new yearly high. Similar analysis as well in terms of entry scenarios.


In one day it filled the gap from last August. Up over 5% more after hours. News catalyst, but that might not last. Possible gap and crap short scalp entry on immediate dumping at or very near the bell. It might keep gently selling off to be held a bit longer, but this is mainly a quickie. It could also spike up even more before stalling and retreating, which might require a top fish fade to enter. In that case, you can risk it but I am flat.

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