Tuesday, November 23, 2010

LVS Watch

Las Vegas Sands Corp. (LVS) has moved to bull phase on Person's Proprietary Signal (pps) and the parabolic sar. However, the on-balance volume has yet to confirm the phase switch, and today's price drop creates a doubt, in my mind at least, as to whether the recent three-day uptrend has legs.

ppspsarmacd obvh-a trend ma20ma50ma200
LVS $49.13

The on-balance volume (obv) on Monday tipped slightly above its prior (lower) high, and then retreated. In the table above I'm coding it as sideways, although it could just as well be coded as a somewhat malformed leg of the obv downtrend that began early this month.

Today it is running about 451 million shares. Yesterday's obv was 471 million, and the prior high was 475 million, plus change.

On the Person's chart, today's 3.3% downward gap at the open tumbled the price from near the upper weekly pivot down two-thirds of the way to the midlevel.

Person's Table
ppspps openupper pivotlower pivot
LVS $49.13 $47.87 nov19 $51.85 +5.5% $41.64 -15.3%

LVS has about 4% to go before encountering upside resistance at the swing high of Nov. 22, and about 3% down until it hits the 20-day moving average.

Reversal Levels
  • $55.47, +12.9% (nov5 swing high)
  • $51.14, +4.1% (nov22 swing high)
  • $49.13 --- You are here.
  • $47.64, -3.0% (20-day moving average)
  • $44.10, -10.2% (nov17 swing low)

The rule of my game for growth stocks is no obv confirmation, no position opening. So as much as like I LVS, I won't be jumping aboard at this point.

If the bull phase holds, and the on-balance volume moves persistently above 475 million shares or so, then I'll consider entry. Otherwise, with earnings 2-1/2 months away, there's no penalty for waiting.

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.

  • h-a trend - Heikin-Ashi trend.
  • obv - On-Balance Volume.
  • pps - Person's Proprietary Signal.
  • psar - Parabolic Stop and Reverse
  • ma20 - 20-day moving average
  • ma50 - 50-day moving average
  • ma200 - 200-day moving average
  • macd - Moving Average Convergence-Divergence

About the glance: The colors indicate the state of each signal.
  • Signal Section:
    • pps, psar, macd: green for bull mode, red for bear.
  • Confirmation Section:
    • obv: green for uptrending, red for downtrending.
    • h-a trend: green for uptrending, red for downtrending.
  • Environment Section:
    • ma20, ma50, ma200: green for above the average, red for below the average.

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