Monday, November 03, 2014

Watchers for the 11-4-14 trading session


See my previous comments for this recent initial red session Supernovae. It closed above the open off a gap down, advancing under 0.50% Monday on low volume. Still up a lot, might have more fade legs.


First red day Supernovae. Finished red 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 quite 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 small, range more expansive. Mixed short signals at best on those counts, but watch it.


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 3.45) and holds. Avoid shorts, keep flat on true weakness. Nice move above 3.25. Needs to keep above the Monday close, or at least above 3.25 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 3.30 are ideal for aggressive entry.


Red floater scan return. Idea is to play for more down side on day 2. Closed red over 2% on Monday off a gap down open that ended below the debut. Stop just above the Monday session high (16.64) 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 Monday means it may have unclear chances to work. A 16 fail may be ideal. Avoid big gaps/longs. Panic dump?


In play both ways. As a long on continuation of momentum above 1.50/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 1.40/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 1.40. The fade is more likely given the price action on Monday, but keep an open mind.


B/O scan. I like it long back over 4.44 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. Moderate volume on the rise, a tepid sign for new buys. Exiting below 4.25 on fails after trigger entry is possibly advisable. Early r/g buy?


Bearish Engulfing. I like it short below the low (1.90) of Monday. Modest volume on the drop, which is a decent 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 Tuesday. More conservatively a stop placed above Monday's close, too. The high on that day is arguably not too far away to use for risk control via stops. Ideally keeps under 1.98 on any pull ups to stay viable as a short. Avoid all big gaps/longs.

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