Sunday, February 27, 2011

Watchers for the 2-28-11 trading session


First red day Supernovae. Finished red by less than 0.5% last time, so more down side might be realistic. If it had fallen much more than 10% then less 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 less likely given the nominal degree of reddening on Thursday. 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. Volume declining, which is not bad news for shorts. Up after hours over 5.5% so let us hope for a drop.


Big gap down following a 1st red day (in effect) Supernovae on Thursday. See my comments for the Friday session. The volume on Friday itself in reddening was modest in comparison. Having weakened, the theory is to play for more down side on Monday, but this will be in play both ways I suspect. If we spike up out of or near the open, a long scalp is possible. Down after hours, an early red to green long is possible. This might be held longer as a day trade. Also a fade on confirmed weakness cues or morning panic style dumps on heavy volume at any time, or consistent trading below the opening price level after the first 5 minutes of the session.


See my comments from last time, they mostly still apply. This could either inch again all day or dump spectacularly within minutes. I suspect the former. As long as 2 holds this remains cautiously in play long. Once the dump happens shorts will have to be quick and accept some degree of slippage to participate.


New Supernovae scan return. Stock price has doubled in 5 sessions, and that rise was kind of gradual. A fade entry on confirmed weakness cues. Avoid longs, keeping flat on consistently strong price action. Box and drop if need be. Easiest is a flat or nominally up or down open and immediate reddening to short into. This might be an EOD exit with even selling. Heavy volume sell dumps are short scalps. Avoid all large gaps.


Break out. Another hot energy stock at new 52's. Consistently strong price action, like trading above the opening price level after the first 5 minutes, is a long. Or, if it gaps down a bit or opens flat and falls briefly, a red to green and hold with strong volume. Avoid shorts, keeping flat on any signs of enduring weakness.


See my comments for FXEN which resembles the situation here, except this had nice earnings that factored into Friday's move to reach yearly highs. Not into a short, which is tricky on any earnings play, at any rate.


A former promotion that seems to be turning into the latest "incher" that might be cautiously longed on early and often strong price action, where it steadily advances all day trading above the opening price level. With one hand on the mouse in case a serious panic sell hits on heavy volume at any time. EOD exit ideally if it holds up. Keep flat on any sustained weak price action. Probable gap up open. Cleared 1.04 after which more resistance is found at 1.23 so some room for upside could still be in the cards. Be careful, though.

Unofficially, I am watching PTSC and ALAN at or near the bell for momentum scalping as a long. These had moves Friday that might energize things up on Monday early. Short term stuff, only, not likely an EOD exit.

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