Thursday, May 31, 2012

Watchers for the 6-1-12 trading session


New Supernovae scan return. A staggered move up which closed under the highs and above the open. Volume varied most days, now peak. 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 Friday 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 2.50 fail of some kind may prove pivotal. Up A/H over 5%.


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) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume large Thursday, a poor sign for new buys. Needs to keep above the Thursday close or at least over 3.50 on pull backs to remain viable as a long, aside from any early noise. No A/H quote.


Red floater scan return. Idea is to play for real down side on day 2. Closed up on Thursday below the open off a gap up. Stop above the previous day session high (4.72) to cap losses on head fake fade entries. More conservatively, stop above the close on Thursday 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. Modest buy volume on Thursday means it might have reasonable chances to work. A 4.60 fail would be ideal. No A/H quote. Avoid all big gaps and longs. 4 big up sessions before the close under open today.


B/O scan. I like it long above 2.03. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Thursday or the 1st 30 minute low of Friday. Avoid all shorts and all big gaps. The low on Thursday 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. Medium 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 2 first before buying is smart.


Bullish Engulfing. I like this long over the high (17.95) of Thursday. 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 Friday. More conservatively a stop placed under Thursday's close, too. The low on that day is not too far away to use for stops. Ideally stays above 17.50 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. No A/H quote.


I like this short on over extension on a gap and crap top fish or better a fall fail back under 9.75/holds or 10. Avoid big gap downs. Also short on confirmed weakness cues or panic dumps at any time, possibly scalping. Keep in mind many plays like this go on to become Supernovae scans; it would not surprise me if it overtakes 9.75 and keeps going a bit. Stops above today's high conservatively, or a bit above 10. No longs. No A/H quote.These are very high percentage plays if timed right on the fall day.


In play both ways. As a long on spiking up at or near the gun as a scalp. Or on take/hold/perk off of 10. Or as a short on over extension on a fall fail near 10 or a gap over and move back under and holds. Or on spike downs at or near the gun as a scalp fade. I am hoping for the short as I see more routes to that. Psychological distribution area exists near the level given above, sells there are likely. These make good risk control points when setting stops. Modest float, possible squeezer. No A/H quote. Avoid all big gaps.

New users: Read my trading guide for my play set-ups!

Review my blog at Investimonials:

Follow me now on Twitter:

Watch my instructional trading videos on YouTube:

Subscribe to Big T by e-mail:

Subscribe to Big T in a news reader:

The blog has a terms of service. Be sure to read it at:

No comments: