Sunday, October 09, 2011

Watchers for the 10-10-11 trading session


First true red day Supernovae. Finished down less than 8% last time, so more down side might be realistic. If it had fallen much more than 10% then less 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 modestly likely given the average degree of reddening Friday. No A/H quote. 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 sorta too. Neutral signals for new shorts.


Red floater scan return. Idea is to play for more, better down side on day 2. Closed negative nominally on Friday. Stop above the previous day session high (11.68) 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 means it might work out well enough.


The plan is a bounce play long off a double bottom with support @ 1.32 which held Friday. Any perking up on a test and hold is a buy. Clearly, a fall under 1.30 might have more selling in store, so it could be faded on a breach. I like the long best if it sets up. Also long on spiking up at or near the bell on a scalp. Avoid all big gaps. No A/H quote. A flat or nominally up/down debut is ideal. Early weakness and a trigger take/hold, too.


Bullish Engulfing. I like this long over the close of Friday and also the high. Medium volume on the rise, which is a neutral sign for new buyers. Keep flat on real weakness aside from a typical red to green move, etc. Stops just under the low last time or the initial 30 minute one on Monday. More conservatively a stop placed under Friday's close, too. The low on that day is likely too far away to use for risk management via stops. Must keep above 1.75 to remain viable as a long. No big gaps or shorts. More volume needed. OTC stock.


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 (6.81) and holds. No A/H quote. Avoid shorts, keep flat on true weakness. Nice move to make a new annual top price on medium volume, a tepid sign for new buys. Needs to keep above the Friday close or at minimum over 6.50 on pull backs to remain viable as a long, aside from any early noise.


B/O scan. I like it long above the close or better yet the high of Friday. Needs to stay above 8.75 on pull backs to remain viable for longs. Stops also possible just under the close on Friday or the 1st 30 minute low of Monday. Avoid all shorts and all big gaps. The low on Friday is possibly not too far away to use for risk managing stops. Also a long on spiking up at or near the gun as a scalp. Modest volume on the rise, a fair sign for new buys. No A/H quote. If it takes and holds 9 it could keep going.


Bearish Engulfing. I like this short under the close/low of Friday. Modest volume on the drop, which is a fair sign for new sellers. Keep flat on real strength aside from a typical green to red move, etc. No A/H quote. Stops just above the high last time or the initial 30 minute one on Monday. More conservatively a stop placed above Friday's close, too. The high on that day is a bit far away to use for risk control via stops. Must keep under 4.21 on any pull ups to remain viable as a short. Avoid all big gaps/longs. A fail under 4 is ideal here.

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