Thursday, May 23, 2013

Watchers for the 5-24-13 trading session


See my original comments for approach. Since this ended almost unchanged or down not more than 2%, they still apply. Still looking to fade this if it sets up as a popped Supernovae scan.


First red day Supernovae. Finished down almost 15% 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 rather likely given the large red result of  Thursday. 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 medium, range wider. At best weak/mixed short signals.


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 8.10) and holds. Avoid shorts, keep flat on true weakness. Nice move above 7.50. Needs to keep above the Thursday close, or at least above 7.75 on pull backs to remain viable as a long, aside from any early noise. Up A/H a bit.


B/O scan. I like it long back over 2.02 and holds. 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 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. Down A/H about 1%. Exiting below 1.90 on fails after trigger entry is possibly advisable. Early r/g? Chart gap over 2.11.


Bullish Engulfing. I like this long over 4.53/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 Friday. More conservatively a stop placed under Thursday's close, too. The low on that day is probably too far away to use for stops. Ideally stays above 4.30 on pull backs to remain viable as a long if it triggers. No big gaps or shorts. Up a bit A/H.


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 5.80/holds. Avoid all big gaps, especially up ones. If it gaps over the trigger or 5.79 let it test/hold/perk 1st before entering. No shorts, keep flat on redness. Modest sell volume, could mean it is unclear, not yet suggesting reversal. No A/H quote shift.


Red floater scan return. Idea is to play for more down side on day 2. Closed south a hair on Thursday off a gap down open that ended below the debut. Stop just above the Wednesday session high (18.74) 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 decent sell volume on Thursday means it might have some chances to work. An 18.50 fail would be ideal. Avoid big gaps/longs. Panic dump?

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