Monday, April 21, 2014

Monday's Prospects: Round 2

Four symbols survived my first round of analysis of the regular large-, mid- and small-cap lists, and in addition, three made it through on the supplemental large-cap bear signals list.

I was able to dispose of four symbols in short order. GTT on the small-cap list is too young for me to trade. It began trading in June 2013, and I require a year's history minimum before I'll play a stock.

On the supplemental list, SDRL failed confirmation, and the other two -- MAT and UNH -- failed under the reset-day rule. See the Earnings Exclusion section and the Glossary of my trading rules, which may be found here.

That left the three symbols from the large-/mid-cap list, all of them bull signals.

PLXS opened Thursday on a 4.8% upside gap after the announced an earnings outlook that beat the Street. I'm always reluctant to trade into news, where everyone has already placed their trades. I much prefer to traffic in rumors.

DY and AV appear to be in the late stages of uptrends that have lasted for several years.

I don't intend to consider trades on any of these signals and won't be doing further analysis.

One other ground for suspicion of any signals listed in "Monday's Prospects" is the fact that the signals occurred on Thursday, a day when the markets closed early prior to the Good Friday holiday. Such days tend toward quirkiness in the markets, producing movements that don't survive into the following "normal" trading days.


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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