Wednesday, October 19, 2011

Watchers for the 10-20-11 trading session


New Supernovae scan return. A 4 day move up which closed below the open and under the hod. Volume modest the 1st 2 days, but big last the 2. 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 Thursday 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. Reversal soon.


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 0.90) and holds. Avoid shorts, keep flat on true weakness. Nice daily chart price correction fill. Volume medium today, a neutral sign for new buys. Float/price a tad modest. Needs to keep above the Wednesday close or at least over 0.75 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 up on Wednesday a bit less than 2% but below the open via a gapper. Stop above the previous day session high (3.13) to cap losses on head fake fade entries. More conservatively, stop above the close on Wednesday 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. Heavy, but diminishing buy volume on Wednesday which means it might work out well enough. Great daily chart, strictly a day trade. 3 fail ideal here.


Bearish Engulfing. I like it short below the low of Wednesday. Huge volume on the drop, which is a bad sign for new sellers. Keep flat on real strength aside from a typical green to red move, etc. Up close to 3.5% A/H. Stops just above the high last time or the initial 30 minute one on Thursday. More conservatively a stop placed above Wednesday's close, too. The high on that day is really too far away to use for risk control via stops. Must keep under 0.50 on any pull ups to remain viable as a short. Avoid all big gaps/longs.


B/O scan. I like it long above 0.82. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Wednesday or the 1st 30 minute low of Thursday. Avoid all shorts and all big gaps. The low on Wednesday is too 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, a neutral sign for new buys. No A/H quote. 1 test?


Bullish Engulfing. I like this long over the high of Wednesday. 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 Thursday. More conservatively a stop placed under Wednesday's close, too. The low on that day is possibly not too far away to use for risk management via stops. Must keep above 4.60 on pull backs to remain viable as a long. No big gaps or shorts. No A/H quote.


Fade potential. See my previous comments. Most are still in force for entries, exits and play management tips. This did redden today out of over extension, but closed above the open via a gap down. Medium sell volume means average chances of seeing more, coupled with its lofty chart recently. Avoid all big gaps and longs. No A/H quote change. Place a stop if shorting on weakness above Wednesday's high or Tuesday's. Or use the initial 30 minute high of Thursday, especially if it gaps down but still appeals.

Also keep an eye (off table) on RAYS which has been inching north for days now. It hit 1.80 today. It might have a bit more juice left on a push to 2 with a sell off probably coming there in just minutes, likely wiping out several sessions of gains. Monitored long on positive price action, early red to greening, spiking up (scalps) etc. I am waiting for the short on confirmed weakness cues or panic dumps at any time or the 2 profiteering.

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