Tuesday, February 22, 2011

Watchers for the 2-23-11 trading session

KV.A and KV.B

First red day Supernovae. Finished red by over 10% last time, so more down side might not be entirely realistic. If it had fallen less than 10% more could be expected as plausible. Always watch day 2 of a busted one. 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 high volume greening or strength, especially early. This is more likely given the high degree of redness on Tuesday. Avoid entries as a short on big gaps up or down, but down is probably worse. Keep flat on consistently strong price action, like trading above the opening price level. Avoid spike up long scalps, too.


Red floater scan return. The idea is usually to play for second red day, hopefully with more redness, than the first one. Here, it fell less than 3%, so it might pan out. A fade on confirmed weakness cues or morning panic style dumping, whenever it occurs. If it opens on flat or barely green or red, the former entry will be easiest. Panics are more likely to be short scalps, while even handed distribution is more likely to be a longer day trade. Avoid longs, keeping flat on consistently strong price action. Avoid all big gaps, especially down ones.


Wow. Look at the chart. The volume spike is big enough to trip over. Say the word cancer and speculators buy buy buy. This probably has legs tomorrow, at least initially. As such, it might spike up. Long scalp on that if you can force a fill without too much slippage. Some brokers allow special market orders that can limit the premiums usually associated with them, which typically prevent most traders from using them. Here, speed will be of a premium, but one has to protect oneself. Soon this will be an awesome short, maybe even later in the morning, but that might require top fishing, which is something to do at your own risk. It will be easier to do that the next day if it does not gap too much and either panics or sports the usual confirmed weakness cues. One idea is to sell half of a long spike scalp and retain the balance if it holds up to aim for more gravy. It could gap well up and dump at once, which would also do just fine on a gap and crapper.


You gotta love that chart. Paid promotion just keeps going up a bit each day. Sooner or later the dumpers are gonna shock the naive and deep six this tons in minutes, but it still might have last gasp left, so if it gaps up again and inches north, it is a long with the hand on the button at all times. Also a short on morning panic style dumping, whenever it occurs. And of course a fade on confirmed weakness cues. See my comments from last time as they are largely unchanged. Be aware unless you wait for the short once the dump happens it will be challenging to get out quick. Special market orders with down side risk limits can be used with the right broker. Longs are really tardy here, so shares will be hard to come by for the shorts.


A past pumper with bad internals that rose over 41% today on no obvious news or catalyst. Volume decent, but not stellar. Up another 4% after hours, it will be interesting to see what the grazing herd does with this early tomorrow. It could spike up at or near the gun, but I suggest a flat stance on that. Or, it could sell off hard on panic or evenly sell off on confirmed weakness cues for a fade scalp or day trade short, respectively. Even MB chatter seems mostly skeptical of how much legs this one has. Unless it gaps up well more than it is currently up after hours, I am flat on top fish fading this, too. A big gap and crap might be playable, though.


Keep flat on any Bullish price action. This junker has had a new lease on life lately, but it might be another short like in January. Volume is lessening, a good sign for potential shorts. A fade entry on morning panic type dumps whenever they happen or the usual confirmed weakness cues. Any fall under 4 should work, too. No longs. Keep flat on consistently positive price action. I see a red day coming fairly soon for this trash.


Well, this has had many high volume spike and price range days in the past year. Each and every time, it seems, it fails to hold its spikes. Indeed, it usually closes well off of its highs on the rise day, just like today. A short on confirmed weakness cues or morning panic style dumps, whenever they arise. Avoid longs, keeping flat on consistently strong price action. If this spikes up from the gun or near it instead, this is one of the rare top fishing fades I would entertain on dying momentum, based on past history. But I hope no need will occur.

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