Two symbols, high liquidity TIF and low liquidity ISCA, survived initial screening to become final contenders for a trade. (See "Tuesday's Prospects" for details.) In the end, both failed upon a closer look at their charts.
TIF confirmed its bull signal by trading and closing above its breakout level, but it did so while managing a 2.4% intra-day decline. Quite a trick, when you think about it. Anyhow, I'm not about to play into that sort of near-term downside momentum, even on a chart that is in an uptrend. I'll keep an eye on TIF to see if there's a glitter of upside momentum to help me change my mind.
ISCA is tracking the S&P 500 fairly closely. It hit a swing high on May 28 (May 22 for the S&P 500), declined to a lower low on June 25 (June 24 for the S&P 500), and then resumed its rise. Neither the stock nor the index has yet moved up to a higher high, so that lower low on the daily chart puts both in a downtrend.
(I'm trading from East Asia and the time difference has added a day to my analytical cycle. Were I stateside, the trading decisions on these symbols would have been made during Tuesday's market session rather than prior to Wednesday's.)
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.