Saturday, May 19, 2012

Watchers for the 5-21-12 trading session


New Supernovae scan return. A staggered move up which closed under the highs and above the open. Volume decreasing most days, now at lows. 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 Monday and spike down for a short scalp. This might even be a gap and crap. A fade on confirmed weakness cues anytime 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. A 5.50 fail of some kind may prove pivotal. Revamped from initial scan for Thursday session.


Potential 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 11.42) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume huge Friday, a poor sign for new buys. Needs to keep above the Friday close or at least over 10.50 on pull backs to remain viable as a long, aside from any early noise. 11+ even better.


Bullish Engulfing. I like this long over the high (2.85) of Friday. Modest volume on the rise, which is a fair 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 Monday. More conservatively a stop placed under Friday's close, too. The low on that day is not too far away to use for stops. Ideally stays above 2.73 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. No A/H quote.


Bearish Engulfing. I like it short below the low (2.97) of Friday. Low volume on the drop, which is a good sign for new sellers. Keep flat on real strength aside from a typical green to red move, etc. Stops just above the high last time or the initial 30 minute one on Monday. More conservatively a stop placed above Friday's close, too. The high on that day is too far away to use for risk control via stops. Ideally keeps under 3.10ish on any pull ups to remain viable as a short. Avoid all big gaps/longs. A 3 fail is the idea here, essentially.


B/O scan. I like it long back over 8.07 and holds. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Friday or the 1st 30 minute low of Monday. Avoid all shorts and all big gaps. The low on Friday is 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. Exiting below 8 on fails after trigger entering might be prudent. Early r/g? No A/H quote. Scale in possible over 8.


Bounce play back over 5/holds. No shorts. Trigger long only. Place a stop just under 4.80 at the lowest. Or use the previous session close, or initial 30 minute low of Monday. Avoid all big gaps, especially down ones. If it gaps just over/under the entry level, let it test/hold/perk 1st before a buy. No A/H quote. Former mover.


Hammer scan long. The tail is too long to use the low as a stop level unless the position is very modest. Use the previous session close instead. Trigger is above the high of last time, here above 4.97/holds. Avoid all big gap, especially up ones. Scale in possible over 5 for 2nd 1/2 of shares, etc. 5+ is the ticket. No A/H quote. If it gaps over the trigger or 5 let it test/hold/perk 1st before entering. No shorts, keep flat on redness.

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