Monday, October 20, 2014

Watchers for the 10-21-14 trading session


First red day Supernovae. Finished red over 32% 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 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 medium, range larger. Fairly lame short signals at best on those counts, but watch it.


New Supernovae scan return. A 4 day move up which closed below the highs and below the open. Volume medium 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, no scalps.


See my comments for the above stock, which resembles this one. Another Supernovae with a 4 day rise.


B/O scan. I like it long back over 0.51 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. Exiting below 0.475 on fails after trigger entry is possibly advisable. Early r/g buy?


Bullish Engulfing. I like this long over 11.79/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 Tuesday. More conservatively a stop placed under Monday's close, too. The low on that day is too far away to use for stops. Ideally stays above 11.50 on pull backs to remain viable as a long if it triggers. No big gaps or shorts. 


In play both ways. As a long on continuation of momentum above 1.44/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 1.20/ 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 1.20. The fade is more likely given the price action on Monday, but keep an open mind.


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 Monday's open for risk control. Trigger is below the low of last time, here under 6.03/holds. Avoid all big gaps, especially down ones. If it gaps under the trigger or 6.09 let it test/hold/fall from there 1st before entering. No longs. Stop above Monday's high at the most if more aggressive. 

New users: Read my trading guide for my play set-ups!

Review my blog at Investimonials:

Follow me now on Twitter:

Watch my instructional trading videos on YouTube:

Subscribe to Big T by e-mail:

Subscribe to Big T in a news reader:

The blog has a terms of service. Be sure to read it at:

No comments: