3/27 Top Prospects

I tapped into another pool of stocks to analyze. This posting updates with my findings.

A note on terminology: I’m changing what I call tradable stocks that haven’t made the Top Prospects list from "Not So Interesting" to "Not Top". I mean, all stocks are interesting, even the dogs. I never met a chart I didn’t find absolutely fascinating, even on shares that I wouldn’t trade for love nor money.

Issues that are candidates for new positions in my accounts.

Bull Changes:
• Recent breakouts: EZPW, GILD, LXU, MO, NBR, OME, RAVN.
• Existing phase added: CAP, JAZZ, SUP, WLK, WLP, WWWW.

Bear Changes:
• Recent breakouts: CMA.

Bull Positions

sym	adx	traj	psar	bday	blevel	bstop	2-day?
BTU				mar18	$70.84	$72.97
CAP				mar2	$21.29	$20.65
CBI				mar16	$37.50	$36.38
CLH				2010sep17	$67.36	$65.34
DFS				2010sep23	$16.49	$16.00
EZPW				mar23	$29.94	$29.04
GILD				mar24	$41.82	$40.63
JAZZ				mar3	$25.48	$24.72
LOW				feb18	$26.29	$25.50
LXU				mar24	$37.74	$36.61
MO				mar24	$25.82	$25.18
NBR				mar24	$28.80	$27.94
OME				mar23	$13.78	$13.37
RAVN				mar22	$56.55	$54.85
SLV*				feb17	$30.44	$29.53
SUP				mar16	$21.84	$21.18
SWN*				mar16	$40.16	$38.96
WFMI*				jan13	$51.75	$50.20
WLK				feb16	$44.16	$42.84
WLP				jan10	$61.00	$59.17
WWWW				feb9	$10.35	$10.71

Bear Positions

sym	adx	traj	psar	bday	blevel	bstop	2-day?
BBY				feb11	$33.40	$34.40
C				mar4	$4.54	$4.68
CMA				mar23	$36.80	$37.10
CREE				mar4	$50.05	$51.55
DAL				jan18	$12.15	$12.51

Issues that I hold positions in are marked with an asterisk (*).


Evaluations
See the Top Prospects posting for issues evaluated as top prospects, and the Bull Worksheet and Bear Worksheet postings for other evaluations.

• Top Prospects are issues upon which I would consider opening a new position.
• Not Top plays are issues that are tradeable under my rules but fail to meet the criteria for Top Picks. It's not against my rules to trade these stocks, but their condition on the chart leaves me unenthusiastic about opening a new position.
• Out of Play issues aren’t prospects for new positions under my rules because the parabolic sar phase doesn’t match the price-channel phase.

Key

• adx: Average direction index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 30 and up but below 40, magenta (light purple) for 20 and up but below 30, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, purple for sunset on the horizon and brown for the earth.)
• traj: Trajectory of the ADX, green for strengthening, red for weakening or yellow for unchanging. Note that if the adx column is orange and the trajectory column is red, then the position must be closed.
• psar: The parabolic sar, either green for bullish or red for bearish.
• 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.
• bstop: The stop/loss price calculated on breakout days as the 14-day average true range below the breakout-day low for a bull phase and above thre breakout-day high for a bear phase.
• 2-day?: Marked with an "✔" if the two-day rule is in effect. Under the rule, if the price closes below the breakout level on each of the two days following breakout day, then the position must be exited.

About channel analysis

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

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