Thursday, May 05, 2011

Watchers for the 5-6-11 trading session


Supernovae, now maturing. See my comments for last time, which are generally correct in terms of entry/exit/play management suggestions. One difference is that buy side volume is declining, a good sign. This one is a several day mover. 2 closes straight that were below the open but still green due to gap ups.


First red day Supernovae. Finished down less than 4% 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 average degree of reddening on Thursday. No A/H quote. 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 price range was pedestrian and so was volume, not a bad sign for fades.


The acid test for more inching will be tomorrow. I like it long on consistently strong price action. Not into a short. Flat on clear weak price action. See my previous comments, they mostly still apply in terms of entry/exit/ play management tips. Use the previous session close or lod on stops it resumes inching on swings.


I like this long on more momentum, especially a 17 test and hold. An early long is possible over 16.76ish. Clearly new 52's at 17.50+ is a long as well. We could see an early red to green for the entry, if it opens timidly. Keep flat on consistently weak price action, avoid shorts.


Now a red floater scan return, the idea is to play for more gravy down side on day 2. It closed south by less than 4% today, so that might be in the offing. Low volume selling, as well. A fade on confirmed weakness cues or heavy volume dumping, especially early. Keep flat on more greening, since it's already over extended.


A low float squeezer that spiked early today, but closed off of the highs. Huge comparative volume. Some newsletter mention, but otherwise little obvious catalyst for a nearly 47% rise. Possible scalp long on spiking up at or near the bell. The best play will be a short if we do not have top fish time it, which would entail it opening on a gap and then crapping at or near the gun, or on a flat or nominally green/red open that dumps soon after. The risk of squeezing is such that a short term approach is advisable. Panic dumps are best.


One of those early feedback set ups I like, due to good risk/reward and management. 4 bucks is the level in question, this being a long over and holds with accelerating prices and volume. It's tested a few times dating back months involving a price correction. Low volume, even comparatively, today. A fail at 4 is a fade entry. Stop placement is usually pretty obvious and tight on such plays, as a bonus. If we gap over 4, wait on a test. If it holds and perks up off of there, long. If it fails to hold, short.

Off table, I like BYD long above 9.95 or 10 and holds with volume and acceleration. No shorts. Keep flat on sustained weak price action. It's been rising on lower volume of late, by the way. Down A/H so a red to green long might arise early that hopefully has some legs.

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