Monday, August 01, 2011

Watchers for the 8-2-11 trading session


First red day Supernovae. Finished down over 18% 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 big degree of reddening today. 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 modest, range much more imposing. Mixed signals for new shorts. OTC stock, caution.


New Supernovae scan return. A several day move up which closed above the open and under the hod. Volume modest most days, now huge. 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. An OTC with no clear float size info so it might not be done. If it reverses on you get out fast or risk being short squeezed.


I like this long on a B/O continuation play over 4 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. Up a bit over 0.5% A/H. Also a short on a fall back under 4 and holds in a failed B/O 2nd day. A live price action situation. If the broader market tanks that might hinder buys. Avoid all big gaps. Modest volume on the rise, a positive sign.


Bullish Engulfing and B/O scan. I like this long over the close (which was also the high) of Monday. 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 Tuesday. The low on Monday is too far away to use for risk management via stops. More conservatively a stop placed under Monday's close, too. 0.75 test coming, long on success. No big gaps or shorts.


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 (over 0.56) and holds. Avoid shorts, keep flat on true weakness. Nice chart. Strong buying here. Volume sizable, which is not ideal for new longs. Needs to keep above the Monday close or at minimum over 0.50 on pull backs to remain viable as a long, aside from any early noise.


Red floater scan return. Idea is to play for more, better down side on day 2. Closed below the open up 0.75% on Monday. Stop above the previous day session high (8.18) 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. Medium level sell volume on Friday which is decent if it sets up to fade. Get out on 8.25+ and holds.


This keeps inching quietly up, and I like it long on more strong price action. Beacon and Stock Preacher, a few scummy names, are touting this, adding some "me too" fuel to the fire. The way to play these is to either reserve shares and box it, waiting for a big dump day, when if it advances for many sessions it loses most of the gains in minutes intending to drop it, or to cautiously buy it with a constant watch and a finger on the sell button, limiting exposure (size) and swinging it. A cheap Pinkie, so if buying (the typical course) be wary. You may have to endure some slippage and have to exit in a hurry under less than ideal terms. More upside likely.

New users: Read my trading guide for my play set-ups!

Review my blog at Investimonials:

Follow me now on Twitter:

Watch my instructional trading videos on YouTube:

Subscribe to Big T by e-mail:

Subscribe to Big T in a news reader:

The blog has a terms of service. Be sure to read it at:

No comments: