Wednesday, October 21, 2015

Watchers for the 10-22-15 trading session


Again see my previous comments. No change today, watch for downside fades to play. Supernovae.


Treat this as an initial red session Supernovae. See my previous comments the first red session on 10-16-15. or for ERII below. Possible short, despite it falling a lot today since it's still up tons.


First red day Supernovae. Finished red under 8% last time, so more down side might be in the cards. If it had fallen much more than 10% then less 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 somewhat likely given the sizable 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 bigger. Mixed short signals at best on those counts, but watch it.


In play both ways. As a long on continuation of momentum above 7.29/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 7/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 7.29. The fade is more likely given the price action on Wednesday, but keep an open mind.


B/O scan. I like it long back over 7.45 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. Moderate volume on the rise, a neutral sign for new buys. Exiting below 7.20 on fails after trigger entry is possibly advisable. Early r/g buy?


Bullish Engulfing. I like this long over 6.50/holds. Modest volume on the rise, which is a decent 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 not too far away to use for stops. Ideally stays above 6.36 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.


Hammer scan long. The tail is not too long to use the low as a stop level unless the position is very large. Use the previous session close alternatively instead. Trigger is above the high of last time, here above 6.95/holds. Avoid all big gaps, especially down ones. If it gaps over the trigger or 6.93 let it test/hold/perk 1st before entering. No shorts, keep flat on redness. Moderate sell volume, which may mean overt buy interest is near starting, suggesting reversal upwards is soon at hand. 

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