Friday, May 2, 2014

Friday's Prospects: Round 2

All five survivors of my first round of analysis (see "Friday's Prospects") confirmed their signals by continuing to trade beyond their breakout levels.

The one symbol from the small-cap list, the drug company RXII, gave a bull signal in a huge 18% opening gap to the upside on news about drug testing. I tend to avoid signals resulting from news, and besides, the bull signal has occurred on a bearish chart.

Of the four mid-/large-cap symbols, RAD and CLS are also bull signals occuring on bearish charts, so I have set them aside.

That leaves CMCSA and WAG. (I'm ignoring CMCSK which is essentially the same as CMCSA.)

CMCSA my well have peaked on Feb. 12. A quick assessment suggests to me that the next major price move will be a reversal to the downside. (In Elliott wave terms, I see CMCSA as having completed wave A to the downside on April 15 and as now rising in wave B. One wave B is complete, then wave C will carry CMCSA down again, perhaps below the endpoint of wave A, $47.74.)

WAG remains quite bullish within the uptrend that began in 2012. Thursday's bull signal produced a new high that suggests the stock has moved into the final phase of that rise.

Although WAG is late in its rise, I find the chart interesting enough to warrant a closer look. It's possible, certainly, that the uptrend is less advanced than a first glance suggests. I'll post an analysis prior to 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.

Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.

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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