Sunday, July 31, 2011

Watchers for the 8-1-11 trading session


Supernovae, now maturing. See my previous comments for general entry/exit/play management tips. These are still mostly applicable. Biggest volume yet, hopefully it peaks soon. A fade on clear weakness cues only.


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 (16.76) and holds. No A/H quote. Avoid shorts, keep flat on true weakness. Nice chart and gap to new price range over earnings. Volume huge, which is not ideal for new longs. Needs to keep above the Friday close or at minimum over 16.50 on pull backs to remain viable as a long, aside from any early noise.


Another new annual high play with analysis similar to that for the above play. See those comments for further details on entry/exit/play management angles. Big volume here as well, not a plus. Earnings related move, too. New 52's at 18.16 and long over that. No A/H quote. Avoid all big gaps. Needs to keep above 17, ideally.


I like this long on a continuation play over 9 and holds with good volume. Let it test and perk up off of first before going long unless it just spikes up at or near the gun for a long scalp. Earnings catalyst. Lots of former resistance around 9ish. Also a short on a fall back under 9 and holds in a failed B/O 2nd day. A live price action situation. If the broader market tanks that might hinder buys, true for STMP as well. Avoid all big gaps.


Bullish Engulfing/Parabolic Sar scan. I like this long over the close of Friday and also the high. Modest volume on the rise, which is a decent sign for new buyers. Keep flat on real weakness aside from a typical red to green move, etc. No A/H quote. Stops typically just under the low last time or the initial 30 minute one on Monday. The low on Friday is arguably not too far away to use for risk management via stops. More conservatively a stop placed under Friday's close, too. 8 test coming, long on success. No big gaps or shorts.


Red floater scan return. Idea is to play for more, better down side on day 2. Closed negative a bit over 2% on Friday. Stop above the previous day session high (4.94) to cap losses on head fake fade entries. More conservatively, stop above the close on Friday 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 level sell volume on Friday which is good if it sets up to fade. This could squeeze if it takes an holds 5. Accordingly, the most liberal stops should be not much above that. You have to be willing to cut losses.


Cheapie 3 White Soldiers I am not suggesting a long on, though it might not be done yet. No clear news, no obvious promotion other than a few Twitter me-too pumpers, etc. A fade on morning panic style dumps on volume for at least a scalp or on confirmed weakness cues. At 0.20 a drop back below would help, too. do not top fish or short over that level. Avoid all big gaps and longs, even scalps on spikes. OTC so be careful.

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