Monday, July 28, 2014

Monday's Prospects: Round 2

Of the five symbols that made it past my first round of analysis, the best bet at the opening bell was a bull play on LYB.

It broke past its 20-day price channel on Friday immediately after earnings were published. It opened this morning above the earnings day high of $107.68.

However, it quickly pulled back from that high and an hours after the opening bell, is trading 10 cents below the required confirmation level.

Such are the perils of making trading decisions in real time. LYB may in fact again rise above the confirmation level of $107.68, or it may not. My decision at this point is to not do a full analysis with an eye toward trading today. I'll add it to my Watchlist and revisit the symbol on Tuesday.

Change of plans. LYB has reversed course and confirmed the bull signal. I shall post an analysis prior to the closing bell today.

Of the others, all bull signals, BCC and TKC has bearish charts. DLB and LPNT are failing confirmation.

My supplemental chart of high-volume potential bear plays produced one possibility from Friday's trading: TXN. It has confirmed its break below the 20-day price channel by trading still lower today.

However, TXN has a bullish rating from Zacks Investment Research, the service I use to give me short-cut for fundamental analysis. I very much prefer that the Zacks rating and the signal be aligned.

So I'm passing on a TXN bear play and don't plan to post new analysis today.

See "Monday's Prospects" for details of the first round of analysis.

-- Tim Bovee, Portland, Oregon, July 28, 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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