Wednesday, June 01, 2011

Watchers for the 6-2-11 trading session


See my previous comments, little has changed. Volume still there in accumulation, but it might be nearing some respite. It closed lower than it opened. This almost cracked today, but it has been a stubborn little bugger.


First red day Supernovae. Finished down over 13.5% 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 possibly more likely given the high degree of reddening on Wednesday. Up about 1% A/H. 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. Selling volume was light, price range moderate. A mixed bag for fades.


Another 1st red day Supernovae, which very strongly resembles the above play. See those comments for entry/exit/play management tips. See volume was also light and had moderate price range, too. Fell by 15% today so the risk of a bounce is a bit higher as well. Nevertheless, often a 2nd short occurs on a popped one.


New 52's. Short term, these yearly high stocks usually go higher. Cup correction over the past month took out the previous high at 17.25 so any hold of the that level if tested is a potential long. 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 change. No shorts, keep flat on true weakness. Not a lot of volume on the rise, which is not a terrible sign. It needs to get back over 17 to be a really plausible long.


Almost new annual highs but did not quite get there today. This is at 6.88 and we made 6.72 before closing under that. Nice volume into the close. Analysis is similar roughly as for the above stock, see those comments. Long on strong volume over the high of today. It's up A/H to 6.88 so if it can hold on a test and perk up off of there we might be in business. It might fail there, but I am flat on that in this case.


Red floater scan return. Idea is to play for more, better down side on day 2. Stop above the previous session high (7.54) or better yet another recent one at 7.60 to cap losses on head fake fade entries. The correction to test the top area looks nice, so if it takes and holds over it that means a failed trade or a long. I'm only into the shorting possibility if it surfaces, keeping flat on strength. Also a short on heavy volume dumps/confirmed weakness cues. I like all plays with technical areas close to give feedback on whether it is going my way.


Another stock I hope is over extending soon. It might not be done, but again a feedback area is close to determine if it will keep going or distribute. On an annual time frame you can see that level is 0.90 on the daily chart. We closed at 0.85 today. This is a cautious long on a take and hold of the higher ceiling I mentioned. I will keep flat on that, though. Ideally we test the ceiling and fail there to fade it. Or we gap over and fall back under it or the close of today. Also a short on heavy volume dumps/confirmed weakness cues. I like all plays with technical areas close to give feedback on whether it is going my way.

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