This daily posting tracks my covered call plays for October.
CAR broke below the 20-day Donchian price channel, switching to bear phase, and also below a sideways trend in force since Aug. 23.
NOV broke below the price channel into bear phase, and also below a sideways range that began Aug. 9.
SPRD turned to neutral phase in its Donchian price channel, but the decline isn’t enough to negate the upward trend. Far from it: After opening with a downward gap, the price has risen intraday.
TKR move to price channel bear phase, and it’s flirting with the lower limit of a sideways range that began on Aug. 9.
Other price channel breakouts to bear phase, unaccompanied by sideways range breakouts: COG, CVI, JNJ.
I wrote yesterday about possibly buying protective puts as insurance, but that will need to wait upon some clarity: Will there be a retracement (my guess is yes) or a wholesale rush to the exits?
Friday has no economics releases, so I really want to see what happens on Monday, after new home sales are released.
| sym | phase | trend | adx | 200/50 | 40/10 | |
|---|---|---|---|---|---|---|
| CAR | ||||||
| CNX | ||||||
| COG | ||||||
| CVI | ||||||
| GMCR | ||||||
| HAL | ||||||
| JNJ | ||||||
| KEG | ||||||
| MCO | ||||||
| NOV | ||||||
| SPRD | ||||||
| TKR |
Key
- phase: 20-day price channel phase, with green for bull trend, red for bear trend and yellow for neutral trend.
- trend: Price direction, green for higher highs and higher lows, red for lower highs and lower lows, yellow for neither.
- adx: Average directional 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.)
- 200/50: The moving average cross, green for the 50-day ma above the 200, red for below and yellow for closely aligned.
- 40/10: The moving average cross, green for the 10-day ma above the 40, red for below and yellow for closely aligned.
About my trading methods
Read a detailed explanation of my analysis method, including trading rules. These don't, at present, discuss my covered call strategy, which is under revision.
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.
The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.
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