Thursday, June 5, 2014

Thursday's Prospects: Round 2

All of Wednesday's bull and bear signals among the 18 survivors of my first round of analysis were confirmed today as the prices remained beyond their 20-day price channels. (See "Thursday's Prospects" for a list of the first-round survivors.)

The charts were different story. All but one of the potential bull play had charts that were insufficiently bullish for me to play. Each had the downward hook that is so characteristic of the market these days.

The one exception, TLKGY from the over-the-counter list, has very low average volume -- about 1,200 shares a day -- and no forward earnings estimates.

One of the bear signals, LNDC from the small-cap list, had insufficient open interest to allow its options to be used in constructing a position.

The other, TCK from the large-/mid-cap list, is liquid and has options I can work with to construct a bear position.

On the downside, it has only a neutral rating from Zacks Investment Research, the service I use to provide a shorthand for the financial and analyst environment surrounding the chart.

I intend to write an analysis of TCK and to post it prior to the closing bell.

-- Tim Bovee, Portland, Oregon, June 5, 2014

References

My shorter-term trading rules can be read here. My longer-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.


Disclaimer
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.
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Based on a work at www.timbovee.com.

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