Tuesday, July 9, 2013

SEMG: The chart trumps doubt

Update 7/12/2013: SEMG moved below its initial stop loss on July 11 and I closed the position on July 12 for a 1% loss. The position was structured as long shares.

On July 5 I analyzed SemGroup Corp. (SEMG), concluding, "I'll wait for a breakout above the $58.08 level before opening a position on SEMG, and even then, I may not go there." (See "SEMG: Art thou mad!")

SEMG's price broke above the $58.08 level on Monday and confirmed it today by trading still higher. 

Unlike the S&P 500, the push moved the price above the May 21 high, the peak from which the broad markets have undergone a correction.

That gives SEMG's chart a more bullish tinge than the blue chips have, and that has overcome my reluctance to open a position in SEMG, based in part on the weak financials.

Decision for my account: I've opened a bull position in SEMG, structuring it as long shares.

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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