Tim Bovee, Private Trader: Tuesday's Prospects: Round 2

Tuesday, May 27, 2014

Tuesday's Prospects: Round 2

Nineteen symbols made it through my first round of analysis over the week end. (See "Tuesday's Prospects".) Of those, only one -- COG -- was a potential bear play, and it failed confirmation by moving back up into the 20-day price channel.

In the second round of analysis, one other failed confirmation, KIN, a potential bull play off of the small-cap list.

For the others, there were no standouts other than the charts. I found three with charts I through to be sufficiently bullish: LEA, DOW and EXP.

LEA makes auto parts, and DOW and EXP make materials used by downstream companies to make their goods. In all three cases, we're looking at behind-the-scenes actors, not the stars from the consumer sector that stands in the spotlights on stage. These are workaday companies, not the glitterati.

All three are rated neutral by Zacks, so there's no help there in distinguishing among them. DOW has the highest average volume and is the only one to have options that are sufficiently liquid to meet my preferences.

So DOW it is. I'll post an analysis prior to the closing bell.

References

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.

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.