Friday, May 10, 2013

Watchers for the 5-13-13 trading session


First red day Supernovae. Finished down over 13% last time, so more down side might not be in the cards. 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 fairly likely given the clear red result of 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 after the noise candle. Avoid spike up long scalps, too. Selling volume was moderate, range more expansive, mixed signals for new shorts.


Another initial red session Supernovae, see my comments for the above stock which this roughly resembles for general approach tips. Ended red by around 25% Friday on moderate volume. Not ideal signs for fades.


New 52's. Short term, these yearly high stocks often 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 17.80) and holds. Avoid shorts, keep flat on true weakness. Nice move above 15.40. Needs to keep above the Friday close, or at least above 17 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 more down side on day 2. Closed down on Friday off a gap up open that ended below the debut. Stop just above the Friday session high 17.95) to cap losses on head fake fade entries. 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 Friday means it might have unclear chances to work. A 16.73 fail would be ideal. Avoid big gaps/longs. Panic dump?


B/O scan. I like it long back over 2 and holds. 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 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. Exiting below 1.90 on fails after trigger entry is possibly advisable. Early r/g?


Bullish Engulfing. I like this long over 5/holds. 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 borderline too far away to use for stops. Ideally stays above 4.81 on pull backs to remain viable as a long if it triggers. No big gaps or shorts. Up A/H less than 0.50%.


In play both ways. As a long on continuation of momentum above 3.20/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 3 and holds. Or as a scalp sell on a pop down at or near the bell. Avoid all big gaps. Be careful maintaining a short on a reversal back over 3. No A/H quote shift. The fade is more likely given the price action on Friday. 

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: