Sunday, February 27, 2011

2/27 Channels

An update of the Channels chart showing new additions from the weekend scan.

  • Bull list additions: BA, GPS and PBR.
  • Bear list additions: CX, FCX, MRVL, NTAP and WMT.

There were many bear additions on Feb. 22, the date of a sharp decline across nearly all stocks. We'll see if these signals truly have legs.

Bull Positions
Added BA, GPS, PBR.
symbdayblevelstopadx ≥40?2-day?
BA feb25 $73.52 $71.31   x
DELL feb16 $14.46 $14.20    
EBAY feb1 $31.64 $30.69    
EWJ feb2 $11.25 $10.91    
GPS feb15 $22.51 $21.83    
JNK* feb4 $40.52 $40.20    
JNPR feb4 $38.73 $37.57    
PBR feb22 $38.70 $37.54    
PM feb15 $60.14 $58.68    
SLV feb17 $30.44 $29.53    
USO feb23 $39.48 $38.30   x
WFT feb1 $24.11 $23.39    
XLY feb7 $38.42 $37.74    
Issues that I hold positions in are marked with an asterisk (*). "X" after a symbol means it is slated for removal from the list.

Bear Positions
symbdayblevelstopadx ≥40?2-day?
ABT jan28 $46.03 $47.41    
AMGN feb18 $52.36 $53.51    
AMR jan20 $7.54 $7.77    
BBY feb11 $33.40 $34.40    
BRCM feb18 $41.94 $43.20    
CMA feb23 $37.48 $38.60   x
CX feb22 $9.10 $9.37    
EWH feb22 $18.33 $18.76    
EWS feb22 $13.20 $13.27    
EWT feb22 $14.53 $14.97    
EWW feb23 $59.76 $61.24   x
FCX feb22 $52.31 $53.88    
FTR feb23 $9.06 $9.31    
JNJ jan25 $61.25 $62.30    
MRVL feb24 $17.78 $18.31   x
NEM feb25 $55.84 $55.93   x
NOK feb14 $9.08 $9.35    
NTAP feb22 $51.76 $53.31    
STT feb24 $43.78 $45.09   x
TGT feb18 $53.06 $53.62    
TUR jan27 $62.87 $64.76    
USD/CHF feb23 SF0.92978 SF0.93922    
WDC feb23 $31.35 $32.29    
WMT feb22 $53.14 $54.73    
Issues that I hold positions in are marked with an asterisk (*). "X" after a symbol means it is slated for removal from the list.

Here are the potential trades that I’m tracking using channel analysis.

Tracking for a bull breakout

Tracking for a bear breakout
DRYS LLY      

  • bday: Breakout day, the day the price broke through the upper or lower 55-day price line.
  • blevel: Breakout level, the price level of the line that was broken through.
  • stop: The current stop/loss price. Early in a bull or bear phase, this will be 5¢ below the low or above the high, respectively, on breakout day.
  • adx ≥ 40?: Marked with an "x" if the ADX is at 40 or above, the levels that require an exit if the adx turns down.
  • 2-day?: Marked with an "x" on the two days following breakout day. Under certain circumstances, if the price closes below the breakout level on both days, then the position must be exited.

About channel analysis

Read a detailed explanation of my channel analysis method, including trading rules.

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 decision decisions for his or her own account, and take responsibility for the consequences.

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