Tuesday, May 21, 2013

Watchers for the 5-22-13 trading session


First red day Supernovae. Finished down under 10% last time, so more down side might be in the cards. 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 fairly likely given the decent red result of Tuesday. 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 modest, range bigger. At best weak/mixed signals for new shorts.


New Supernovae scan return. A 3 day move up which closed above the highs and above the open. Volume modest most days, peak Tuesday. 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 scalps.


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 10.08) and holds. Avoid shorts, keep flat on true weakness. Nice move above 9.50. Needs to keep above the Tuesday close, or at least above 9.50 on pull backs to remain viable as a long, aside from any early noise. Up A/H a bit less than 0.50%.


Red floater scan return. Idea is to play for more down side on day 2. Closed red over 0.50% on Tuesday off a gap up open that ended below the debut. Stop just above the Tuesday session high (5.88) 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. Moderately strong sell volume on Tuesday means it might have decent chances to work. A 5.75 fail would be ideal or one at 5.78. Avoid big gaps/longs. Panic dump?


B/O scan. I like it long back over 3.07 and holds. 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 arguably too far away to use for risk managing stops. Also a long on spiking up at or near the gun as a scalp. Low volume on the rise, a fair sign for new buys. No A/H quote. Exiting below 3 on fails after trigger entry is possibly advisable. Early r/g?


Bullish Engulfing. I like this long over 14.25/holds. Moderate 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 Wednesday. More conservatively a stop placed under Tuesday's close, too. The low on that day is not too far away to use for stops. Ideally stays above 14 on pull backs to remain viable as a long if it triggers. No big gaps or shorts. No A/H quote.


Hammer scan long. The tail is not too long to use the low as a stop level unless the position is very large. Use the previous session open alternatively instead. Trigger is above the high of last time, here above 24.86/holds. Avoid all big gaps, especially up ones. If it gaps over the trigger or 24.80 let it test/hold/perk 1st before entering. No shorts, keep flat on redness. Moderate buy volume, could mean their interest is plausible, suggesting reversal. No A/H quote.

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