Thursday, May 8, 2014

Thursday's Prospects: Round 2

Nine symbols survived my first round of analysis, all of them bullish except for one, NG. (See "Thursday's Prospects".)

AON failed confirmation, PZE's bull signal came on a bearish chart and CACQ has been traded for less than the year that I require under my rules.

That leaves six signals, with little to differentiate them except for liquidity and the financials.

GPK and DD have the highest average volumes of the six. DD has the larger market capitalization and a somewhat higher return on equity. GPK has a bullish rating from the forward-looking Zacks, while DD's rating is neutral.

DD is an industrial behemoth, a chemical company that has been around since 1802; GPK is a nimble info-age designer of packaging intended to catch the consumer's eye and wallet, as well as a creator of systems to get the goods from points A to B.

DD has the heft, but GPK has the faster growth.

I'll write an analysis today of GPK as a bull trade under my shorter-term rules, primarily on the strength of the Zacks assessment, all else being equal. It will be a shares play, since the options lack the open interest profile I need to build a derivatives position.

DD's options have sufficient open interest for me to trade, but ultimately, it is my judgment of the chart and company, not the mechanics of trading, that must drive my decision-making.


My shorter-term trading rules can be read here. My longer-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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