Tuesday, May 29, 2012

Watchers for the 5-30-12 trading session


New Supernovae scan return. A 5 day move up which closed under the highs and above the open. Volume varied most days, now medium. 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 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 0.25 fail of some kind may prove pivotal. A cheap Pinkie, be wary and careful here.


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 4.64) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume large Tuesday, a poor sign for new buys. Needs to keep above the Tuesday close or at least over 4.50 on pull backs to remain viable as a long, aside from any early noise. Down A/H a bit less than 0.5%


Red floater scan return. Idea is to play for more down side on day 2. Closed up on Tuesday off a flat debut. Stop above the previous day session high (3.39) to cap losses on head fake fade entries. More conservatively, stop above the close on Tuesday 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 Tuesday means it might have just average chances to work. A 3.30 fail would be ideal. No A/H quote change. Avoid all big gaps and longs. 4 big up sessions before the doji print today.


Bullish Engulfing. I like this long over the high (3.48) of Tuesday. 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 Wednesday. More conservatively a stop placed under Tuesday's close, too. The low on that day is arguably not too far away to use for stops. Ideally stays above 3.40 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. No A/H quote change.


B/O scan. I like it long above 6.11. 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 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. Up A/H a tad. If it does not spike up at the outset and retreats, letting it test and hold/perk off 6 first before buying is essential.


Bearish Engulfing. I like it short below the low (1.22) of Tuesday. Low volume on the drop, which is a goof 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 Wednesday. More conservatively a stop placed above Tuesday's close, too. The high on that day is  arguably too far away to use for risk control via stops. Ideally keeps under 1.35ish on any pull ups to remain viable as a short. Avoid all big gaps/longs. Up near 2% A/H.


In play both ways. Ideally, as a fall fail fade back under 2.59. If it gaps over, let it test/fail before shorting. A test from below that fails there works, too. Up 1.5% A/H. 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 2.70. If  today's high maintains it could have more. A r/g entry? Also long on spiking up at or near the gun for a scalp. Low float squeezer.

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