One, MILL, is a potential bear play. However, its options are insufficiently liquid to allow me to construct a bear position.
The three remaining symbols, all potential bull plays, confirmed their breakouts by trading still higher this morning, although SWHC on the small-cap list flirted with non-confirmation, breaking back into its 20-day price channel before rising again.
An initial assessment of the CCL and TSS charts tells me that each is, most likely, within a downtrend. The bull signals they gave are retracements to the upside as the stocks zig-zag lower. I much prefer to trade with the trend, not against it.
SWHC is in an uptrend, although in a late stage. It lacks liquid options and so presents no opportunity for leverage.
Only CCL out of the bunch has options that I could trade.
Bottom line: I don't like any of these enough to do a full work-up, so I'm failing them on the second round of analysis.
No symbols survived the first round on the supplemental list of large-cap bear signals, no there's no joy there.
I won't be writing any analysis today from the new prospects lists.
NGG, which has been on the Watchlist since April 16 as a potential bull play, is on track to confirm a fresh breakout today that meets my chart criteria for trading. However, the company publishes earnings on May 15, which brings NGG within the 30-day earnings exclusion period, so I can't take the trade.
NGG will remain on the Watchlist and I'll do a fresh assessment post-earnings. See my initial analysis, "NGG: Whipsaw candidate".
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.