Wednesday, May 30, 2012

Watchers for the 5-31-12 trading session


First red day Supernovae. Finished down over 3.5% 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 a lot less likely given the modest degree of reddening Wednesday. 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 too. Here a gap down played a part. Decent signals to short.


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 13.92) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume medium Wednesday, a tepid sign for new buys. Needs to keep above the Wednesday close or at least over 13.10 on pull backs to remain viable as a long, aside from any early noise.


Red floater scan return. Idea is to play for more down side on day 2. Closed down almost 7% on Wednesday off a gap up. Stop above the previous day session open (1.18) to cap losses on head fake fade entries. More conservatively, stop above the close on Wednesday 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. Big sell volume on Wednesday means it might have poor chances to work. A 1 fail would be ideal. Down almost 2% A/H. Avoid all big gaps and longs. Just 2 big up sessions until last time. 


Bullish Engulfing. I like this long over the high (13.88) of Wednesday. Medium volume on the rise, which is a neutral 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 not too far away to use for stops. Ideally stays above 13.72 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. Down a tad A/H.


B/O scan. I like it long above 4.05. 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 arguably not 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 4 first is suggested.


Hammer scan short. The tail is arguably not too long to use the low as a stop level unless the position is large. Some resistance is on the daily chart right at 18.80. Use a bit over today's open for risk control. Trigger is below the low of last time, here under 18.50/holds. Avoid all big gaps, especially down ones. No A/H quote. If it gaps under the trigger let it test/hold/fall from there 1st before entering. No longs.


In play both ways. Ideally, as a fall fail fade back under 4.36. 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 huge gaps. Long on more upside on a test/hold/perk off 4.36. If this maintains this it could have more. Also long on spiking up at or near the gun for a scalp. An over/under live price action call.

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