Change in procedure: Under my rules I don’t open new positions in shares within 30 days of earnings. Beginning today, however, I shall report on such shares, marking them with a section symbol (§) next to the ticker symbol.
Looking at the fundamentals and analyst opinion, I’m neutral regarding near-term prospects for SODA and VHC, and extremely bearish regarding prospects for VIP (the mobile phone company that old hands will recognize as the one-time bull-market darling of Russian capitalism).
I’m quite bullish on prospects for DPZ, which I came to through back channels (looking at the fundamentals first, and then the chart).
- phase: Green for a bull-phase breakout, red for a bear phase.
- adx: Average direction index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 25 and up but below 40, magenta (light purple) for 20 and up but below 25, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
- 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.
- atr: The 14-day average true range, in the same currency as the price.
- atr%: The average true range as a percentage of the breakout level, an indicator of volatility that is comparable for all potential trades.
About channel analysis
Read a detailed explanation of my channel analysis method, including trading rules.
The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.