Tuesday, June 3, 2014

Tuesday's Prospects: Round 2

Out of 20 symbols that made it through my first round of analysis, none survived the second round. Confirmation failures knocked seven out of competion. A rough first-glance at the chart knocked out nine more. (See "Tuesday's Prospects" for a full list of first-round survivors.)

Of the remaining four, one, PBYI, a breakout to the downside, had an overly wide spread on its options, making a bear play impossible to set up. The other three -- VIAB, FSRV and XOM -- were rated neutral by Zacks Invesstment Research. I prefer trades that are backed by a directional opinion from Zacks.

A note on the charts. In an essay posted May 25, "A Tale of Three Charts", I looked at three charts and identified two recurring themes, one of which I named, in an excess of whimsy, the "Corrective Hook".

Most of the potential bull plays I looked at in today's walk-through of the charts showed the Corrective Hook pattern. For me, that pattern is a warning to wait and see what happens. And that's what I have done.

With nothing to analyze from among Tuesday's prospects, I'll use the time to analyze ERF, a possible long-term play with monthly dividends that I opened Monday without a full analysis in order to meet today's ex-dividend date.

I'll post the analysis prior to the closing bell, and based on my conclusions, with either close the position, hold it under my longer-term rules and move it to my more sensitive shorter-term rules.

-- Tim Bovee, Portland, Oregon, June 3, 2014


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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Based on a work at www.timbovee.com.

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