Monday, April 28, 2014

Monday's Prospects: Round 2

All four survivors of my first round of analysis confirmed their signals in trading today.

See "Monday's Prospects" for a complete run-down of the first-wave analysis.

IMAX has the highest volume of the surviving symbols. It sent a bear signal on Friday. Its chart, however, is in an ambiguous uptrend following a sharp price decline in 2011. I say ambiguous because because it remains below the peak and so could be counted as either an uptrend or a downtrend, and nearer term it has yet to attain the lower low required to count it as a downtrend.

PGI's chart, a bull signal, shows an uptrend, but it is a lower liquidity stock that can be seen as nearing the end of an upward correction within a downtrend.

HWAY, a bull signal, has a bearish chart, and JMPLY, also a bull signal, lacks sufficient liquidity for me to trade.

The two survivors on the supplemental list of highly liquid bear signals, JCI and UAL, both are correcting within an uptrend. JCI is prone to whipsaws and UAL has no history of bear signals during the period analyzed.

Not great choices. I'm going to write a full analysis of IMAX. The chart is sufficiently ambiguous that a full analysis might well show it to be better than it seems. I'll post the write-up prior to the closing bell.


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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