Monday, April 11, 2011

Watchers for the 4-12-11 trading session


The beat goes on. You know the drill, see my previous comments, they still mostly apply. This has caught a 2nd wind since its distribution session on the 6th. It has broken out to new highs on the run up. It can keep going with the right price action, or even be bought on a pull back that holds the old high as a floor if it perks up off of it. Also in play as a short on confirmed weakness cues or morning panic style dumps whenever they surface. Or if the aforementioned support fails. Longs will require constant monitoring, but they have rocked!


First red day Supernovae. Finished down under 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 somewhat less likely given the average degree of reddening on Monday. No after hours quote. Wait for a fail. 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. Sell volume was moderate. That's not a terrible omen for shorts.


Believe it or not, having taken a dollar, this thing can keep inching up or be bought on pull backs if they hold a buck or at least 0.90 for optimists if those levels hold and it perks up off of there. I would prefer it to hold the 1.00 though. Long on strong price action with constant monitoring. This is an insane market, after all. Also a short on confirmed weakness cues or heavy sell pressure dumps, whenever they arise, or a failure to hold the above support levels. I would risk entering on a clear fall under a buck outside of the 1st 5 minutes with a possible sell at 0.90 if it proves to be the floor by bouncing up off of it, or hold longer to cover on a breach.


New 52's are at 0.90 and this is rapidly gathering momentum. If it can overtake that on volume with acceleration, it could keep going. Even the test run to that is a long if it starts out strong. Closed on the hod. I would keep away from shorts, staying flat on sustained weak price action. Possible is an early red to green move for a long as well. This could happen on a nominal gap down and fill. A modest gap up and pullback entry is possible on a fill to the flat line that holds and perks up off of there.


I have a hunch about this one given the volume and price action/range into the close today. Bullish Engulfing chart pattern, following a long move down, hopefully some reversal at least short term. One goes long if the high of the previous session is taken out, here 2.91 and if it takes 3 that's even better. A stop must be placed not much under the low of the previous session which was 2.67 to exit. No after hours quote. I think we'll know early if it has any potential by the price action, or if we just will keep out/flat. Not into a short on this.


Another blast from the past, this one retook 5 impressively today. I like it for more upside if it can power up from the gun for a long scalp, or on a pull back entry if it tries to fill back down to 5 and holds, perking up off there. Or an early red to green. If it cannot maintain 5, especially on a test, it will be a one day wonder. It might be shorted on a fail of 5, but I am hoping the long scenarios pan out since they have more routes to go.


Obviously a bit cheap for my tastes, but I like the chart. Obvious support at .05 and more new support at .06 to work with. I like this long on a gap up and fill with a hold of the 6 cent floor. Keeping above 5 cents is clearly essential, but you could not swing this without a small position if using that as a stop level. Also possible is an early red to green long or just advancing from the gun steadily after 5 minutes in for a long. I would keep flat on clear enduring weakness, so if it cannot perk up off .06 early on I would not go short.

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