IPGP's bull signal was confirmed, but it comes within a slight uptrend that in turn is a correction of prior uptrend. After hitting a correction peak in February and withdrawing a swing low, it has since produced a series of lower highs and lows.
The present breakout moved to a higher high within the downtrend that began in February, but I would want to see the price close above that February high, $70.11, before I'm convinced that IPGP is actually embarking on a new uptrend.
SD confirmed its bear signal. Price is the problem here. It trades for a few cents under $5, and I find option pricing on such low priced symbols to be difficult to work with.
There's also a macro reason to stand back. This is the 12th trading day of the S&P 500 downtrend that began May 22. It's also the second reversal to the upside, and it looks suspiciously similar to the first, on May 28.
That May 28 reversal proved to be a one-day wonder that moved high, then retreated and closed well below its high, and the next day the downtrend continued.
I won't be opening any new positions today.
My trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.
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.