Thursday, September 23, 2010

ENDP Watch

Endo Pharmaceutical Holdings (ENDP) has whipsawed back into bull phase after sending several bear signals in the last few days.

ENDP $29.73

The signal was accompanied by a new swing high but with the pullback, the stock remains within the range of it's last seven trading days.

One-day whipsaws make me nervous. And, even as I write, the Person's bull signal has disappeared, meaning it is marginal enough to cause ghosting.

So, I'm still bullish on this stock, for the reasons stated in my initial write-up. But I don't like it for entry right now.

A persistent break above the $29.90 range high would help soothe my nervousness. Even better, if it were on significantly higher volume.

The risk-embracing trader will open a bull position if the Person's bull phase remains in the place at the end of the trading day. The more cautious will wait for a breakout, on volume, and a couple of days of rising prices to establish the trend.

Tim Bovee, Private Trader tracks the 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 decision decisions for his or her own account, and take responsibility for the consequences.

  • pps - Person's Proprietary Signal.
  • psar - Parabolic Stop and Reverse
  • ma20 - 20-day moving average
  • ma200 - 200-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.

  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways.
  • sto: green for bull, red for bear.
  • sto zone: green for overbought (80+), red for oversold (20-), yellow for neutral zone
  • psar, pps, macd: green for bull mode, red for bear.
  • macd trend: green for rising, yellow for sideways, red for falling.
  • neutral.
  • ma20, ma200: green for above the average by more than 1%, red for below the average by more than 1%, yellow for within 1% either side of the average.

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