Monday, April 14, 2014

Monday's Prospects: Round 2

I entered my second round of analysis with eight possibilities, all of them bear plays. Five had met the odds requirements in the first round of analysis, and three were on my supplemental list of large-cap bear play that had not met the odds requirement.

See "Monday's Prospects" for the full list of first-round survivors and a description of the first-round analytical process.

In the second round, two symbols failed confirmation and three had insufficient open interest to construct a bear play.

That left LB from the mid-/large cap list and two from the supplemental list, VOD and M.

All three have charts that can be construed as the opening steps of a downtrend, M less so than the other two.

My next step was to look at the Zacks ratings to try to distinguish between the three. Zacks is bullish on M, making the potential bear play contrarian, and neutral on LB.

VOD has a bearish rating from Zacks, and also has higher average trading volume than the others.

I shall write a full analysis of VOD and post it prior to the closing bell today.


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.

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 decisions for his or her own account, and take responsibility for the consequences.

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