Thursday, April 24, 2014

Thursday's Prospects: Round 2

The four survivors of my first round of analysis all were confirmed this morning, as they continued to trade beyond the breakout level that produced their bull signals.

I rejected the most liquid of batch, COST, based on the chart. It appears likely that the symbol began a correction to the downside in November. Although at that level there's certainly room to profit, I see nothing that persuades me that there is indeed a great deal of momentum to the upside.

CSTM last year went from having no value to more than $13 a share in a single day. Obviously, there was some sort of change in what the symbol represents. For me, it means that I lack a reasonable span of history to understand the stock's evolution.

MTB has followed the general pattern for stocks -- uptrend beginning in 2009 from the depths of the Great Recession, correction into 2010, and then a resumption of the uptrend in 2011. It's a late-stage uptrend, clearly, and is approaching the pre-recession top, 9% 0.9% above today's opening price.

The over-the-counter survivor, ASBFY, is also in a late-stage uptrend. It's a British company, traded in New York as American depository receipts, with all the disadvantages of such instruments: Relatively low volume and a large bid/ask on shares.

MTB is my best choice of the batch. I dislike its close proximity to major resistance, but 9% isn't a deal killer. I intend to write a full analysis of MTB and shall post it before 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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