Tuesday, June 28, 2011

Watchers for the 6-29-11 trading session


First red day Supernovae. Finished down over 28.5% 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 a lot more likely given the high degree of reddening on Tuesday. Up over 3.5% 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 medium plus, but range big. A mixed bag for new shorts.


Another 1st red day Supernovae. See my comments for the above stock for general entry/exit/ play management ideas. Some differences are that this one did not have the run up over days that the other one had, and it sported greater sell volume but smaller ranger. It fell just over 4% so more down side is a better bet comparatively. Only fade into clear weakening, though. Gravy reddening often follows a popped one.


Red floater scan return. Idea is to play for more, better down side on day 2. Down a rather tolerable 0.5% today, with very strong sell volume, which is less promising. Stop above the previous day session high (4.30) or another recent one at 4.50 to cap losses on head fake fade entries. More conservatively, stop above the close on Tuesday if it starts off net negative. I'm only into the shorting possibility if it surfaces, keeping flat on strength. Also a short on heavy volume dumps/confirmed weakness cues. Odd volume size vs. the range.


Bullish Engulfing. I like this long over the close of Tuesday or better yet the high. Low volume on the rise, which is a good sign for new buyers. Keep flat on real weakness aside from a typical red to green move, etc. No A/H quote. Stops just under the low last time or the initial 30 minute one on Wednesday. More conservatively a stop placed under Tuesday's close, too. The low on that day is too far away to use for risk management via stops, arguably. Several down sessions from a recent down trend in the daily chart before today's move up, indicating possible reversal. Might stall at 1.50 but if not it might mean more upside awaits.


Nice B/O from a long ascending triangle like consolidation area. Impressive volume. 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 (18.16) and holds. No A/H quote. Avoid shorts, keep flat on true weakness. Needs to keep above the Tuesday close or at least over 16.75 or16.50 at worst on pull backs to remain viable as a long, aside from any early noise.


This showed up on one of my B/O filters and another one. It's in play both ways, having crossed a key level psychologically and technically. A fade on a fall fail back under 6. It could gap up slightly or open flat and go under after 5 minutes for the short, or open just under, test 6 and die there for another fade. Avoid all big gaps. It's a long on consistent holding of 6, or more precisely 6.10+ as that is the actual 200 day SMA point.


Another stock in play both ways. First, on an 8 cross and hold only it's a long. This includes spikes up for scalps. Has some resistance there, so it could make another run at it and fail there for a short. Down almost 1% A/H so I hope we recover enough to really test the key level. I am not convince the Facebook of China is all that and a bag of chips, so I'm hoping this fails. Also a short on clear, confirmed weakness cues, or panic dumps. I like the short more if it sets up, but I'm unbiased and waiting for some live price action guidance.

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