Monday, July 18, 2011

Watchers for the 7-19-11 trading session


New Supernovae scan return. A 5 day move up which closed off of the highs and above the open. Volume increasing most days, now big. 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 Tuesday 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 change.


See my comments above for general entry/exit/play management tips, these are similar situations. A Bullish Engulfing set up from last time, this has just gone Supernovae. Volume still strong but erratic. Patience, guys.


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 (16.52) and holds. No A/H quote. Avoid shorts, keep flat on true weakness. Nice closing move to make a new annual top price out of ascending triangle like consolidation. Needs to keep above the Monday close or at least over 16.00 on pull backs to remain viable as a long, aside from any early noise.


Bullish Engulfing. I like this long over the close of Monday 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 Tuesday. More conservatively a stop placed under Monday's close, too. The low on that day is possibly a bit far away to use for risk management via stops. May fall back under 1.00 but if not it might mean more upside awaits. A fail at 1 means no longs, but I am flat on that if it does. We should know early on if it will hold over a buck.


Red floater scan return. Idea is to play for more, better down side on day 2. Closed positive but lower than it opened, due to the gapper. Stop above the previous day session high (2.89) to cap losses on head fake fade entries. More conservatively, stop above the close on Monday 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. Modest buy volume today not as promising for the short odds but it still could work out.


B/O scan. I like it long on a continuation play over the close of today or better yet the high. Needs to stay above 5 on pull backs to remain viable for longs. Stops just under the close today or the 1st 30 minute low of tomorrow. Avoid all shorts and all big gaps. The low of today is a bit far away to use for risk managing stops. Also a long on spiking up at or near the gun as a scalp. Medium volume on the rise today, good for new buys.


I like this long above 7.12 on another attempt to punch through the resistance there. It's failed a few times, so if it can get over the hump, more upside might be in store. Stops under the close of today or the initial 30 minute low of Tuesday. Today's low is probably a bit too far away to use for a stop out. No play without the trigger, and avoid all big gaps. No shorts, keep flat on real weakness, aside from early red to green moves.

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