Thursday, October 24, 2013

Watchers for the 10-25-13 trading session


First red day Supernovae. Finished down over 59% 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 huge 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  large, range too. Poor short signals, but gravy possible still.


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 7.34) and holds. Avoid shorts, keep flat on true weakness. Nice move above 7. Needs to keep above the Thursday close, or at least above 7 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 7.25 are ideal for aggressive entry.


B/O scan. I like it long back over 2.35 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. Sizable volume on the rise, a weak sign for new buys. Exiting below 2.18 on fails after trigger entry is advisable. Early r/g buy?


Bullish Engulfing. I like this long over 4.75/holds. Modest volume on the rise, which is a fair 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 4.57 on pull backs to remain viable as a long if it triggers. No big gaps or shorts. Up A/H less than 1%.


In play both ways. As a long on continuation of momentum above 5/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 5 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 5. The fade is more likely given the price action on Thursday, but keep an open mind. Careful, modest sized float. Up A/H 1.22%.


Red candle floater scan return. Idea is to play for more down side on day 2. Closed red by over 2% on Thursday off a gap up open that ended below the debut. Stop just above the Thursday session high (1.33) 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. Medium sell volume on Thursday means it may have unclear chances to work. A 1.34 fail may be ideal. Avoid big gaps/longs. Panic dump?


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 close alternatively instead. Trigger is above the high of last time, here above 14.50/holds. Avoid all big gaps, especially up ones. If it gaps over the trigger or 14.44 let it test/hold/perk 1st before entering. No shorts, keep flat on redness. Moderate buy volume, which could mean overt buy interest is now developing, suggesting reversal upwards may be materializing.

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