Monday, July 01, 2013

Watchers for the 7-2-13 tradng session


First red day Supernovae. Finished down no more than 6.5% 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 moderately likely given the medium red result of  Monday. 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, neutral s/signals.


New Supernovae scan return. A 5 day move up which closed below the highs and above the open. Volume varied most days, a bit less Monday. 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 Tuesday 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.


Another new Supernovae, see my comments for the above stock for general approach/guidance. 3 days up here on roughly increasing volume.


Another new Supernovae scan, again see my comments for the 1st new one on today's picks for general approach. A 1 day big move up. Looking to fade this on confirmed weakness cues. A 1 fail would be nice.


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 3.60) and holds. Avoid shorts, keep flat on true weakness. Nice move above 3.25. Needs to keep above the Monday close, or at least above 3.25 on pull backs to remain viable as a long, aside from any early noise.


Red floater scan return. Idea is to play for more down side on day 2. Closed south over 0.50% on Monday off a gap up open that ended below the debut. Stop just above the Monday session high (9.75) 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 Monday means it might have some chances to work. A 9.50 fail may be ideal. Avoid big gaps/longs. Panic dump?


B/O scan. I like it long back over 3.60 and holds. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Monday or the 1st 30 minute low of Tuesday. Avoid all shorts and all big gaps. The low on Monday is too far away to use for risk managing stops. Also a long on spiking up at or near the gun as a scalp. Modest volume on the rise, a fair sign for new buys. Down less than 0.50% A/H. quote. Exiting below 3.50 on fails after trigger entry is possibly advisable. Early r/g?

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