Thursday, October 20, 2011

Watchers for the 10-21-11 trading session


Supernovae, still maturing. See my previous comments for general entry/exit/trade management tips. Most are unchanged. Volume is strongest ever. Be patient, and only enter when it falters clearly. Stops a bit over 4 at the most or use the previous close or initial 30 minute high of Friday. Down a bit over 1% A/H.


Now on my official list. Closed unchanged today relative the previous close after a gap up ended lower than it debuted. Volume on the distribution not huge, so it could have more. A fade on confirmed weakness cues or panic dumps, using stops a bit above the high today. On sell panic, scalp short. Also in play long on an early red to green move out of a flat or nominally down open, or spiking up at or near the bell as a scalp buy. A live price action situation as we do not know if today was just a bump in the road on the way to 2 bucks or a sign of things to come. It's usually safest to wait for the short, since the drop on such plays often erases days of inching in minutes. No matter the direction, the play will require constant monitoring.


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 (19.56) and holds. Avoid shorts, keep flat on true weakness. Nice daily chart price correction fill. Volume huge today, a poor sign for new buys. Needs to keep above the Thursday close or at least over 19.00 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 down on Thursday a bit less than 2.5% off a gap down. Stop above the previous day session high (9.12) to cap losses on head fake fade entries. More conservatively, stop above the close on Thursday 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 sell volume on Thursday which means it might yet work out for shorts. Near other resistance on the daily chart with a high some months back @ 9.32ish. Worst case scenario stops suggestive.


Bullish Engulfing. I like this long over the high of Thursday. Small 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. Stops just under the low last time or the initial 30 minute one on Friday. More conservatively a stop placed under Thursday's close, too. The low on that day is likely not too far away to use for risk management via stops. Must keep above 6.00 on pull backs to remain viable as a long. No big gaps or shorts. No A/H quote.


Bearish Engulfing. I like it short below the low of Thursday. Medium volume on the drop, which is a tepid sign for new sellers. Keep flat on real strength aside from a typical green to red move, etc. Down close to 1% A/H. Stops just above the high last time or the initial 30 minute one on Friday. More conservatively a stop placed above Thursday's close, too. The high on that day is arguably a bit far away to use for risk control via stops. Must keep under 3.50 on any pull ups to remain viable as a short. Avoid all big gaps/longs.


B/O scan. I like it long above 4.71. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Thursday or the 1st 30 minute low of Friday. Avoid all shorts and all big gaps. The low on Thursday is possibly 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. Should probably not be held long on retreats back under 4.50 which was the peak volume candle's low today.

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