Wednesday, May 13, 2015

Watchers for the 5-14-15 trading session


A doji print off the gap down, watch once more for a fade on weakness. Fell on smallish volume. No anywhere near a great set-up for shorts at this point, so be careful or pass as desired.


And again here, fell on small volume but still up a lot, a possible fade on weakness. Be careful.


First red day Supernovae. Finished red over 17.5% 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 rather likely given the large 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 moderate, range larger. Weak short signals at best on those counts, but watch it.


In play both ways. As a long on continuation of momentum above 8.21/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 8/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 8. 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 2.11) and holds. Avoid shorts, keep flat on true weakness. Nice move above 1.90. Needs to keep above the Wednesday close, or at least above 1.90 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 2.06 are ideal for aggressive entry.


B/O scan. I like it long back over 8.43 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. Modest volume on the rise, a decent sign for new buys. Exiting below 8 on fails after trigger entry is possibly advisable. Early r/g buy?


Bullish Engulfing. I like this long over 4.90/holds. Moderate 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 Thursday. More conservatively a stop placed under Wednesday's close, too. The low on that day is too far away to use for stops. Ideally stays above 4.70 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.

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