Wednesday, April 25, 2012

Watchers for the 4-26-12 trading session


In play once again. Either as a short on a 2 fail/holds or a scalp fade on spiking down out of the open, or as a long on a 2 test/holds. Or as a scalp buy on a spike up at or near the open. A live price action situation. If it rebounds more inching will follow. If it dumps, it will be more fast and furious. Avoid big gaps. 2 is critical.


Supernovae, still maturing. See my previous comments for details on trade management aspects. Little has changed. Volume lessened today, a good sign for a possible short on a dump.


First red day Supernovae. Finished down a bit over 2% 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. Unlikely given the modest degree of reddening today. 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 large, range also imposing. Not the best signals for 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 (over 6.17) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume forceful Wednesday, a weak sign for new buys. Needs to keep above the Wednesday close or at least over 5.95 on pull backs to remain viable as a long, aside from any early noise. More conservatively, needs to stay over 6.


Red floater scan return. Idea is to play for more down side on day 2. Ended down on Wednesday via a gap up that closed below the open after 6 up days. Stops just above 12.75 tops to cap losses on head fake fade entries. I'm only into the shorting possibility if it surfaces, keeping flat on strength. Also a short on heavy volume dumps/confirmed weakness cues. Moderate sell volume Wednesday which means it may have unclear chances for shorts. Avoid all big gaps, especially large gap downs. No buys. Down a tad A/H.


Bullish Engulfing. I like this long over the high (0.67) of Wednesday. 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 Thursday. More conservatively a stop placed under Wednesday's close, too. The low on that day is too far away to use for stops. Ideally stays above 0.64 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. No A/H quote.


B/O scan. I like it long back over 5.93 and holds. 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. Low volume on the rise, a decent sign for new buys. Exiting below 5.75 on fails after trigger entering might be prudent. Early r/g? Up over 1.5% A/H.

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