Tuesday, November 08, 2011

Watchers for the 11-9-11 trading session


Supernovae, still maturing. See my previous comments, mostly still applicable. Even bigger volume today, but the reversal session should be close at hand. No A/H quote change. These types of plays are bread & butter.


New Supernovae scan return. A 3 day move up which closed off of the highs and above the open. Volume increasing each day, now peak. 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 Wednesday 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.


First red day Supernovae. Finished down under 1 % 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 not very likely given the weak 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 small, range moderate, Not unfavorable signals for new 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 (10.95) and holds. Avoid shorts/big gaps keep flat on true weakness. Nice daily chart price correction move to above 10. Volume large today, a poor sign for new buys. Needs to keep above the Tuesday close or at least over 10.50 on pull backs to remain viable as a long, aside from any early noise. No A/H quote.


Making my Red floater scan a 2nd time in a row. See my previous comments, mostly still in force in terms of entry/exit/play management angles. Red print today a bit over 0.5% on low volume, a good sign. Use the same stops as last time or the lower high today more conservatively, or the 1st 30 minute high of next time.


Bullish Engulfing/Parabolic SAR. I like this long over the high of Tuesday. Large volume on the rise, which is a poor 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. Ideally keeps above 1.60 on pull backs to remain in the play long. No big gaps or shorts. No A/H quote. A Scamex stock.


B/O scan. I like it long above 1.00-1.05. 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 a bit 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. Resistance at 1 is clear on the daily chart, so some could fade on a fail there, but I'm only a long if it sets up. No A/H quote. A test and hold of 1 as a floor to take 1/2 of the position and the other above 1.05 and holds might suffice.

Off table, keep an eye on LSTG for a continuation of its B/O. It made my scan for that but was edge out by the above play. Steady inching up on this thing, which hopefully extends. Possible swing, but are we too late?

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