Wednesday, June 06, 2012

Watchers for the 6-7-12 trading session


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 2.84) and holds. Avoid shorts/big gaps keep flat on true weakness. Volume large Wednesday, a poor sign for new buys. Needs to keep above the Wednesday close or at least over 2.75 on pull backs to remain viable as a long, aside from any early noise. No A/H quote. Low float, squeeze prone.


See my previous comments, still in effect. This has 10+ written all over it in the consolidating price action. Be patient. No shorts. No A/H quote. Set stop just under the close today or the low on Wednesday, etc.


Red floater scan return. Idea is to play for more down side on day 2. Closed down over 1% on Wednesday off a gap down that ended below the debut. Stop above the previous day session high (5.92) 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. Modest sell volume on Wednesday means it might have reasonable chances to work. A 5.75 fail would be ideal. No AH quote. Avoid all big gaps and longs. REED is another one like this, a twin, so watch that one too, off record.


In play both ways. Ideally, as a fall fail fade back under 12.50 If it gaps over, let it test/fail before shorting. A test from below that fails there works, too. Up almost 4.5% A/H to 12.67. 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 12.50 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. Possible red to green long after a weak open and 12.50 test that prevails. A top watcher.


Bullish Engulfing. I like this long over the high (9.44) of Tuesday. 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 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 9.36 on pull backs to remain viable as a long if it triggers. No big gaps/shorts. No A/H quote.


B/O scan. I like it long above 6.05. 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 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 tepid sign for new buys. No A/H quote. If it does not spike up at the outset and retreats, letting it test/hold/perk off 6+ first is crucial.


Bearish Engulfing. I like it short below the low (3.59) of Wednesday. Medium volume on the drop, which is a neutral 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 Thursday. More conservatively a stop placed above Wednesday's close, too. The high on that day is not too far away to use for risk control via stops. Ideally keeps under 3.77ish on any pull ups to remain viable as a short. Avoid all big gaps/longs.

Off table, a bearish hammer play to watch is MCP. Go short under 21.50, stops just over 22 or 23.07.

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