Tuesday, June 10, 2014

Tuesday's Prospects: Round 2

Out of 50 prospects that survived my first round of analysis, 15 failed confirmation by moving back within their 20-day price channels. (See "Tuesday's Prospects" for a complete list of first-round survivors.)

Most of the others had charts that were already clearly moving counter to their bull signals. The one symbol whose chart clearly matched the signal was NSR, which moved below its 20-day price channel, sending a bear signal.

Three others, HURN, ISBC and ANIP, sent bull signals and have fairly bullish charts, but with enough hook on the end that in each might still be the beginnings of a correction. They're ambiguous.

I tossed ISBC because it has a bearish rating from Zacks Investment Research, which is contrary to its signal.

HURN and ANIP have bullish ratings with bull signals.

NSR, the potential bear play, is rated neutral and has options with a number strikes carrying three-figure open interest. However, the front-month at-the-money bid/ask spread on puts is 13% plus change, and I generally like to keep it in the single digits.

Even so, the chart has some interest, and I'll do an analysis of NSR as a potential bear play, posting it prior to the closing bell.

-- Tim Bovee, Portland, Oregon, June 10, 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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