Three out of the 12 symbols that survived my first round of analysis failed confirming, moving back within their 20-day price channels.
All but one of the others have charts showing the the ubiquitous, and ambiguous, hook at the tip of an uptrend that may be a shallow correction or may be the start of a major downturn. In any case, I don't consider that chart pattern to be one worth trading.
(See "Wednesday's Prospects" for a description of my first round of analysis.)
The one remaining symbol, BMA, has a bullish chart, although at first glance it appears to be nearing the end of its upward run.
Also, it has options with open interest too low to trade, meaning it would be a straight shares trade, with no dividend to sweeten the deal.
And Zacks Investment Research, which I rely on as a short cut for the fundamental part of my analysis, gives it a neutral rating.
I don't intend to trade BMA based on this bull signal and don't plan to write any analyses today. Instead, I'll be working through possible trades under my longer-term rules, which, if I find any, I'll write up later.
-- Tim Bovee, Portland, Oregon, June 4, 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.License
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Based on a work at www.timbovee.com.