ROST gave a fresh bear signal. However, I already hold a bear position in the symbol based on a late June break below the 20-day price channel. See the June 26 update to my analysis, "ROST: A downtrend begins".
A move last week above the 10-day price channel took ROST out of bear mode. However, the breakout wasn't confirmed, and so I retained my position, rendering moot the present break below the 20-day channel.
The distinction I'm making is between mode -- bull or bear -- and the trading decision. A symbol can switch modes, but I won't trade the signal unless it is confirmed under my rules.
A bull signal on PBR/A occurred on a bearish chart, and HELI's bear signal can't be traded because the options lack sufficient open interest to construct a position.
I won't be doing further analysis of symbols from the prospects list.
See "Tuesday's Prospects" for a description of the first round of analysis.
-- Tim Bovee, Portland, Oregon, July 15, 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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