Saturday, May 26, 2012

Watchers for the 5-29-12 trading session


First red day Supernovae. Finished down over 16% 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 a lot more likely given the heavy degree of reddening Friday. 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 too. Here a gap down played a part. Unclear signals to short.


See my comments for the above stock, another similarly situated initial red session Supernovae. They are essentially the same. Another gap down with medium sell volume and range. This one burned a lot of shorts before Friday's 18.5%+ down day. An acquisition if I recall correctly. Be careful of reversals, honor stops.


Red floater scan return. Idea is to play for real down side on day 2. Closed even on Friday off a gap up. Stop above the previous day session high (4.04) to cap losses on head fake fade entries. More conservatively, stop above the close on Friday 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 Friday means it might have just average chances to work. A 4 fail would be ideal. No A/H quote. Avoid all big gaps and longs. Out of 8 sessions running it had closed even or better as of Friday, a good sign.


B/O scan. I like it long above 7.15. 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 likely 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 fair sign for new buys. No A/H quote. If it does not spike up at the outset and retreats, letting it test and hold/perk off 7 first before buying might be prudent.


Bullish Engulfing. I like this long over the high (16.06) of Friday. Low 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 16 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. No A/H quote.


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 10.03) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume medium Friday, a tepid sign for new buys. Needs to keep above the Friday close or at least over 9.46 on pull backs to remain viable as a long, aside from any early noise.


In play both ways. Ideally, as a fall fail fade back under 3. If it gaps over, let it test/fail before shorting. A test from below that fails there works, too. No A/H quote. Also a short on panic dumps at or near the bell or in the afternoon. No big gaps. Long on more upside on a test/hold/perk off 3. If this maintains 3 it could have more. A r/g entry? Also long on spiking up at or near the gun for a scalp. Over/under 3 live price action call. 

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