Tuesday's Prospects: Round 2

Of the four symbols that survived my first round of analysis, one -- a bear signal on PBCT -- failed confirmation. The other three -- all bull signals -- made it through the gate and form the pool I'm choosing from: CRD/B, MU and SYRG.

All three symbols have late-stage bullish charts, as I would expect. The bull market has been going on for so long that all bullish charts are in a late stage.

SYRG, while still trading beyond its 20-day price channel, has reversed course and has a net decline intraday, so I set it aside to focus on the other two.

MU is a large-cap stock trading 36 million shares a day on average, and CRD.B is a small-cap stock with volume of 51,000 shares a day on average.

The volume levels means that CRD.B must be traded as long shares and MU has sufficient liquidity for an options spread.

Because the stocks in late-stage bull plays, it is safer for me to be able to construct a hedged position out of options, with a defined and limited loss, rather than an unhedged position built from shares, where the loss limit is zero.

I choose to do a full analysis of MU and shall post it before the closing bell today.

References

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.

Disclaimer

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.