Sunday, May 08, 2011

Watchers for the 5-9-11 trading session


First red day Supernovae. Finished down over than 25% last time, so more down side might not be realistic. If it had fallen much less than 10% then 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 reddening on Friday. 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 volume was light, but not range. This is a mixed bag in terms of shorting odds.


See my previous comments, which are still apply for entry/exit/play management ideas. It kept inching, a good sign. Keep flat on consistently weak price action. Stay or go long on positive price action cues. It remains to be seen if this can hold over 2 and return to the previous highs around 2.25 and move beyond. Could use more volume and it should be watched constantly if going long. We might see another narrow range day.


New Supernovae scan return. A few days move up which closed off of the highs but 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 A/H quote.


Another fresh Supernovae scan, this one was on my list last time. It's squeeze happy low float should be respected. Similar to the above new Supernovae, see that for entry/exit/play management tips. One difference is the low float means a possible spike again early or at the gun can be long scalped, but the best play for that was on Friday. Do not overstay your welcome if it zooms up for you. Of course, I hope it dumps, instead.


See my previous comments on this red floater scan set up from last time, which mostly still apply in terms of entry/exit/play management tips. Buy volume has lessened a lot, more so on each successive red day. A near daily doji print on Friday hopefully will allow Bears to fade this as soon as Monday on weakness. A stop can be placed just above the recent high, which was 6.80 if shorting. Avoid shorting into any clear strength here.


A recent name change, typical trashy move by such stocks. Biggest volume yet on the rise, and no obvious promotion that I am aware of. Already at a yearly high and a good psychological selling point, I am hoping it dumps out of or near the open on Monday to fade into. Keep flat on further greening/strong price action. Morning panic or trading below the opening price level/previous session close are common fading signals. Not a good investment with poor internals. Just patiently stalk this, it's bound to have a good weak day soon.


IBD mention and earnings related optimism here. Could use more volume. 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. Avoid shorts. Keep flat on enduring weakness. No A/H quote. Nice gap up B/O which propelled it above 10.50 on Friday.

Unofficially, I am watching TACT which is another yearly high mover on earnings that resembles CCIX above. See that play for entry/exit/play management ideas. It was a toss up between these 2 picks for listing.

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