Friday, December 06, 2013

Watchers for the 12-9-13 trading session


Again watch for gravy down side, closed up over 4% Friday but only 1 day of real reddening so see my previous comments on approaches here.


Supernovae, still maturing. See my previous comments for approach tips. Potential short.


First red day Supernovae. Finished down over 12% 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 large red result of Friday. 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 bigger. Hum drum short signals, but watch it 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 7.30) and holds. Avoid shorts, keep flat on true weakness. Nice move above 6.75. Needs to keep above the Friday 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.


In play both ways. As a long on continuation of momentum above 2.68/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 2.50 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 2.50. The fade is more likely given the price action on Friday, but keep an open mind.


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 25.64/holds. Avoid all big gaps, especially up ones. If it gaps over the trigger or 25.50 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 approaching, suggesting reversal upwards may fast be at hand. 


Bullish Engulfing. I like this long over 12.80/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 Monday. More conservatively a stop placed under Friday's close, too. The low on that day is not too far away to use for stops. Ideally stays above 12.70 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.

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