Wednesday, December 17, 2014

Watchers for the 12-18-14 trading session


First red day Supernovae. Finished red over 41% 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 Wednesday. 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 low, range also limited. Mixed short signals at best on those counts, but watch it.


In play both ways. As a long on continuation of momentum above 4.09/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 4/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 4. The fade is more likely given the price action on Wednesday, but keep an open mind.


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 15.95) and holds. Avoid shorts, keep flat on true weakness. Nice move above 15. Needs to keep above the Wednesday close, or at least above 14 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 15.55 are ideal for aggressive entry.


Red floater scan return. Idea is to play for more down side on day 2. Closed down over 1% on Wednesday off a gap up open that ended below the debut. Stop just above the Wednesday session high (8.31) 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 Wednesday means it may have unclear chances to work. A 8 fail may be ideal. Avoid big gaps/longs. Panic dump?


B/O scan. I like it long back over 5.64 and holds. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Wednesday or the 1st 30 minute low of Thursday. Avoid all shorts and all big gaps. The low on Wednesday 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 poor sign for new buys. Exiting below 5.25 on fails after trigger entry is possibly advisable. Early r/g buy?


Bullish Engulfing. I like this long over 9.98/holds. Low 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 Thursday. More conservatively a stop placed under Wednesday's close, too. The low on that day is probably too far away to use for stops. Ideally stays above 9.75 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.


I like this long on a break out over 5.14/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. Sizable volume gap up large rise on Wednesday. Requires constant monitoring. Stops just under 4.75 is one risk managing approach, since a fail back under indicates failure on the buy.

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