Thursday, February 05, 2015

Watchers for the 2-6-15 trading session


First red day Supernovae. Finished red over 10.5% 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 fairly likely given the big 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 small, range more expansive. Mixed short signals at best on those counts, but watch it. 


Still up a bunch and finished almost unchanged. See my previous comments for general approaches. A 1st red session Supernovae play from last time.


Like above, this fell on day 2 less than 1.5% so it might have a bit more gravy as a busted Supernovae.


This recent Supernovae actually advanced less than 6% but remains on fade watch. See my last comments.


And again, this was a big gap up that fell to close under open, but above the initial big up day on the Supernovae on 1-29-15. Might have some red left in it. See my comments from last time for tips.


In play both ways. As a long on continuation of momentum above 5.05/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.


Bullish Engulfing. I like this long over 4.20/holds. Medium volume on the rise, which is a tepid 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 too far away to use for stops. Ideally stays above 4 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.

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