Tuesday, November 01, 2011

Watchers for the 11-2-11 trading session


Supernovae play maturing more, still in play. See my previous comments for entry/exit/play management tips, little has changed. One good sign is buy volume is slowing to a crawl, a sign of reversal may finally be at hand.


First red day Supernovae. Finished down over 34.5% 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 rather likely given the big red result of Tuesday. 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 medium, range huge. Not entirely optimum signals for new shorts either.


See my comments for the above stock MNLU for general tips on this play, also a 1st ted session Supernovae scan return set-up. It fell more modestly by far, down over 10% but less than 14% today. Volume was medium modest on the sell side, not the worst sign for the possibility of more gravy. But I would have preferred it to have sold off less than 10% obviously. Stops above today's high if a fade sets up is one angle.


Again, refer to my previous comments. Equally big buy volume today, but it cannot last. I am only into a short on confirmed weakness cues or panic dumps at any time with a tight stop no higher than today's highs. It's been a great run, and some will continue to ride cautiously monitored longs that inch up, but it's getting late in the hour for that every day. When it finally corrects, the chances are good that several days worth of gains will evaporate in minutes or hours on that session. We have seen this before with such stocks many times, though.


B/O scan. I like it long above 9-9.15. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Tuesday or the 1st 30 minute low of Wednesday. Avoid all shorts and all big gaps. The low on Tuesday is 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 decent sign for new buys. Resistance at 9 is clear on the daily chart, so some could fade on a fail there, but I am only into the long if it sets up. No A/H quote.


Bullish Engulfing. I like this long over the high of Tuesday. 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. Stops just under the low last time or the initial 30 minute one on Wednesday. More conservatively a stop placed under Tuesday's close, too. The low on that day is too far away to use for risk management via stops. Must keep above 1.11 on pull backs to remain viable as a long. Ideally, it remains over 1.25. No big gaps/shorts. No A/H quote.


Another B/O scan. See my comments for CALX which this play resembles. Possible move above 10-10.12 on continuation and holds to buy into. Needs to keep over that on pullbacks to stay long if it triggered. Modest volume on the rise, a good sign going forward. Keep flat on 10 fails. If it gaps just over, letting it test and hold/perk off might be advisable. No A/H quote. Avoid all big gaps.

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