Sunday, May 22, 2011

Watchers for the 5-23-11 trading session

WAMKQ

New Supernovae scan return. A 1 day move up which closed on the highs and above the open. Volume is rising fast. Eventually this can be shorted since it is up so absurdly. I suspect like many such plays it can go further than anyone expects, though. Conditional entry. On a higher open, it might yield a rapid green to red on Monday and spike down for a short scalp. This might even be a gap and crap. A fade on confirmed weakness cues or heavy dumping on volume from or near the bell. 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. Do not short into initial strength or greening. Box and drop to wait for the distribution print, if desired and avoid top fish timing fades. Keep flat on positive price action, avoid scalping long. No obvious catalyst. No A/H quote.


TWER

Another cup correction over several months, I like this long if we can hold 5, especially if tested. Also new 52's. Short term, these yearly high stocks usually go higher. 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 to debut or opens flat and falls briefly, a red to green and hold with strong volume. Also long on spiking up at or near the gun as a scalp. This might be an EOD exit, depending on how it holds up. Also long on a break above to new yearly highs and holds. No A/H quote. No shorts, keep flat on true weakness, like a fall under 5. A stop can be placed not much under there with either Monday's or Friday's low, just beneath them.


FL

A bit pricey, but earnings surprised, evinced by the lack of any run up into them and the gapper. Another annual high stock, see the above equity for entry/exit/play management tips as they are fairly similar. No A/H quote. Obviously Friday was the best day to enter as a day trade, but it might have a bit more left to exploit. Keep flat on sustained weakness, we should know early on if any gravy is left.


SURE

This continues to inch forward with accelerating volume. New yearly highs, too. See the above stock for a comparison and for some hints on entry. Long on continued inching. Keep flat on true weakness. Also read:
http://www.hotstocked.com/article/8412/sonora-resources-corp-otc-sure-goes-up-on-old.html Not sure if the premise of it advancing on old news is correct or not, but it's slow and steady reliable lately.


CLNO

This has really taken off since taking 0.20 on the 18th. Now being heavily promoted, the question is whether it has any more upside left to inch forward on Monday or if they sell off or even drop it out of the open then. A short on morning panic style dumps or confirmed weakness cues at any time. A cautious long on dips if it holds the above level on any testing, or just inches up consistently, if constantly monitored. Lots of hands in.


RNGC

Bullish Engulfing. A former runner that might continue to see upside Monday. I like it long if it can hold recent support at 0.90 assuming it tests, or if it just prints above the open after 5 minutes. A stop just under the floor should be used. Seems to have some lower grounding near 0.75 as well, which might be noted by swings.


OPXT

Watch pull packs to see if they hold 2.50ish as a floor. A long might beckon if it perks up off of there. Also possible is spiking up at or near the gun for a long scalp with hold time depending on how well it sustains. Consistently strong price action, like trading above the open after 5 minutes of the session is also a long. Keep flat on fails at the floor, place a stop just under it or the early/1st 30 minute low on Monday. No A/H quote.


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2 comments:

Anonymous said...

When the time is right you can short WAMUQ with Optionsxpress. Here is proof: http://tinypic.com/view.php?pic=207m428&s=7

Big T said...

A good time is when it clearly weakens or has a 1st red day. Most Supernovae plays have gravy aside from needing to call a top, etc.

Brokers vary in terms of share availability for penny stocks. One strategy is having multiple accounts.

Thanks for the comments.