Thursday, October 06, 2016

Watchers for the 10-7-16 trading session


Still up a lot after a nominal 2nd red day popped Supernovae. Potential gravy fade.


Rose again, see my previous comments. Potential fade on weakness. Recent Supernovae.


First red day Supernovae. Finished red over 37% last time, so more down side might not be in the cards. If it had fallen 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 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 sizable, range bigger. Poor short signals at best but watch it.


Again looking for direction, this ended almost unchanged so see my previous comments for a possible short on weakness.


Back to recent highs, another short possible on weakness  from the recent Supernovae. 


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 1.43) and holds. Avoid shorts, keep flat on true weakness. Nice move above 1.30. Needs to keep above the Thursday close, or at least above 1.30 on pull backs to remain viable as a long, aside from any early noise. Early sustained prices over 1.38 are ideal for aggressive entry.


In play both ways. As a long on continuation of momentum above 1.47/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 1.25/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 1.40. The fade is more likely given the price action on Thursday, but keep an open mind.

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