Tuesday, January 26, 2016

Watchers for the 1-27-16 trading session


First red day Supernovae. Finished red almost 35% 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 huge red result of Tuesday. 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 greater. Mixed short signals at best on those counts, but watch it.


Another initial red session Supernovae. Ended down almost 15% today. See my comments above. Medium volume less range. 


I like this long on a break out over 6/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. Big volume gap up debut sizable rise on Tuesday. Requires constant monitoring. Stops just under 5.75 is one risk managing approach, since a fail back under indicates failure on the buy.


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 19.76) and holds. Avoid shorts, keep flat on true weakness. Nice move above 19. Needs to keep above the Tuesday close, or at least above 19 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 19.53 are ideal for aggressive entry.


B/O scan. I like it long back over 16.69 and holds. Ideal to stay over that on tests aside from early noise if it triggers. Stops also possible just under the close on Tuesday or the 1st 30 minute low of Wednesday. Avoid all shorts and all big gaps. The low on Tuesday is too far away to use for risk managing stops. Also a long on spiking up at or near the gun as a scalp. Big volume on the rise, a suspect sign for new buys. Exiting below 16 on fails after trigger entry is possibly advisable. Early r/g buy?


Bullish Engulfing. I like this long over 14.64/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 Wednesday. More conservatively a stop placed under Tuesday's close, too. The low on that day is arguably not too far away to use for stops. Ideally stays above 14 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 open alternatively instead. Trigger is above the high of last time, here above 6.10/holds. Avoid all big gaps, especially down ones. If it gaps over the trigger or 6 let it test/hold/perk 1st before entering. No shorts, keep flat on redness. Moderate buy volume, which may mean overt buy interest is just developing, suggesting reversal upwards is not clear yet.

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