Friday, January 17, 2014

Friday's Prospects: No Trade

Of the seven survivors of my first round of screening (see "Friday's Prospects"), none has made it through the second round. I won't be analyzing or trading anything off of today's prospects list.

GLOG came closest to making the grade. It began its present rise from $8.76 on May 23, 2012.

The chart doesn't lend itself well to an Elliott wave frame. The uptrend has produced a fairly undifferentiated pattern of higher highs and higher lows that could count as an extended fifth wave, culminating in the two-day blowout to the upside that so far has carried the price up 21.4%.

GLOG may push still higher from that level. My experience, however, has been that a move of such magnitude is generally followed by a retracement or a sideways pause.

Click on chart to enlarge.
GLOG 2 years daily bars


My shorter-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.

Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.

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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