Thursday, October 10, 2013

Watchers for the 10-11-13 trading session


First red day Supernovae. Finished down under 4% 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 average 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 moderate, range too. Tepid short signals at best-watch.


Another initial red session Supernovae that can be seen much like the above stock. It fell over 12% though so more down side might be less probable as the volume was huge, too. Watch it anyway for gravy.


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 7.32) and holds. Avoid shorts, keep flat on true weakness. Nice move above 6.50. Needs to keep above the Thursday 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.


In play both ways. As a long on continuation of momentum above 3.18/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. The fade is more likely given the price action on Thursday, but keep an open mind. Careful, moderately sized float. Up A/H 1.37%.


Red floater scan return. Idea is to play for more down side on day 2. Closed red by 3.5%+ on Thursday off a gap down open that ended below the debut. Stop just above the Thursday session high (5.05) 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 Thursday means it may have some modestly hued chances to work. A 5 fail may be ideal. Avoid big gaps/longs. Panic dump?


I like this long on a break out over 2.70/holds. Or on a spike up at or near the gun as a scalp buy. Keep flat on after the noise candle bearish price action or on morning panic dumps. Watch for a early pseudo weakness with a a red to green move to purchase into. Avoid all big gaps and shorts. Possible short squeeze over the trigger. Modest volume sizable rise on Thursday. Requires constant monitoring. Stops just under 2.50 is one risk management approach, since a fail back under indicates failure on the buy.


Bullish Engulfing. I like this long over 4.04/holds. Low volume on the rise, which is a good 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 Friday. More conservatively a stop placed under Thursday's close, too. The low on that day is not too far away to use for stops. Ideally stays above 3.90 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.

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