Tuesday, August 27, 2013

Watchers for the 8-28-13 trading session


First red day Supernovae. Finished down over 28.5% 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 very likely given the big 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 small, range wider. At best, mediocre mixed short signals.


Red floater scan return. Idea is to play for more down side on day 2. Closed down over 0.50% on Tuesday off a gap down that ended below the debut. Stop just above the Tuesday session high (8) 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. Moderate sell volume on Tuesday means it might have unclear chances to work. An 8 fail may be ideal. Avoid big gaps/longs. Panic dump?


B/O scan. I like it long back over 2.68 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 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. Exiting below 2.50 on fails after trigger entry is possibly advisable. Early r/g? Down less than 0.50% A/H.


Bullish Engulfing. I like this long over 18.94/holds. Big volume on the rise, which is a weak 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 probably not too far away to use for stops. Ideally stays above 18.52 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.


Bearish Engulfing. I like it short below the low (3.85) of Tuesday. Modest volume on the drop, which is a fair 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 Wednesday. More conservatively a stop placed above Tuesday's close, too. The high on that day is arguably not too far away to use for risk control via stops. Ideally keeps under 4.02 on any pull ups to stay viable as a short. Avoid all big gaps/longs. Up A/H over 1% so let it settle in first.


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 7.30) and holds. Avoid shorts, keep flat on true weakness. Nice move above 6.50. Needs to keep above the Tuesday close, or at least above 6.50 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 7 are ideal for aggressive entry.


Hammer scan short. The tail is not too long to use the high as a stop level unless the position is very large. Can use a bit above Tuesday's close for risk control. Trigger is below the low of last time, here under 17.85/holds. Avoid all big gaps, especially down ones. If it gaps under the trigger or 18 let it test/hold/fall from there 1st before entering. No longs. Stop above Tuesday's high at the most if more aggressive.

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