Monday, July 1, 2013

Monday: No Trade

Two symbols, MGA and RHP, survived my first-wave screening over the weekend. (See "Monday's Prospects".) However, both potential bull faltered early in the next leg of analysis.

The MGA break above the 20-day price channel was confirmed in trading today. The bull signal is part of an uptrend that began in July 2012. It is MGA's sixth breakout of the trend.

Of the five completed breakouts, four were profitable, with an average yield of 6.5% over 34 days. The unprofitable trades lost 5.6% on average over 6 days, for a yield spread of only 0.9%. That's way too low for my taste. I generally prefer 3% or better.

RHP fell by the wayside much more quickly. The company was split from its parent in 2012 and has been trading independently only since last October. That's less than the year of history I require for a trade.

Neither symbol meets my criteria and preferences, so I won't be opening new positions today.

References 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.

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