Tuesday, January 24, 2017

Watchers for the 1-25-17 trading session


Back to well above the highs prior to the initial drop session. Watch again for a short as gravy. See previous comments. Volume rising again but still a possible fade on weakness.


Sell volume dropping even more, making a pop likely. But it's near the price after the initial red session a few days ago. Short on weakness. See previous comments.


First red day Supernovae. Finished red under 7.5% last time, so more down side might be in the cards. If it had fallen much more 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 moderately likely given the decent 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 wider. Unclear to suspicious at best short signals but watch it.


Another initial red session Supernovae. See my comment for the above play as a rough guide. A series of gap ups that closed lower, today was a gap down dropper on falling volume. Risky.


Rose again on modest volume off a big gap up. Watch again with caution. Risky, but possible fade gravy on weakness. Recent initial down session Supernovae. See my comments from last time.


In play both ways. As a long on continuation of momentum above 6.36/holds. Or as a scalp up at or near the gun for a scalp buy. Or, as a short on a fall fail of 5.50/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 5.83. The fade is more likely given the price action on Tuesday, but keep an open mind.


Bullish Engulfing. I like this long over 3.84/holds. Big volume on the rise, which is a poor 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 not too far away to use for stops. Ideally stays above 3.65 on pull backs to remain viable as a long if it triggers. No big gaps or shorts.

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