Tim Bovee, Private Trader: Monday's Finalist: XLV

Monday, October 27, 2014

Monday's Finalist: XLV

Three survived from Friday's market session, all with bull signals. (See"Monday's Prospects".)

One, ITW, has an insufficiently bullish chart to support entering into a bull position; the price is rising but it has not yet broken above resistance.

A second, LLY, failed confirmation by dropping back within its 20-day price channel.

The third early-round survivor, the health-care exchange-traded fund XLV, continued to trade above its price channel and, indeed, set a fresh higher high before retracing a bit. Its three-year chart is bullish, having broken above resistance.

I shall post an analysis of XLV as potential bull play under my shorter-term rules prior to the closing bell.

Three symbols from Thursday's session were up for consideration today under my earnings exception: DPS with a bull signal, and CAKE and CRI with bear signals. Confirmation required that the price break above the high set on the second trading day after the earnings announcement. All three symbols failed that test.

-- Tim Bovee, Portland, Oregon, Oct. 27, 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. My very short term volatility trading rules 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.