Of the others, two failed confirmation and three lack momentum in the direction of the signal. Two have charts that fail to support the signal, e.g., a bull signal on a chart that is bearish or ambiguous.
The one bear signal in the batch, NLY, meets my second-round criteria, but it is first and foremost a dividend play, with an annualized yield in excess of 10%. I'm reluctant to go bearish on a high-dividend stock. Far better to wait for a bullish opportunity, so I can collect the cash.
That left NGG, which has a bullish chart and a bull rating from Zacks Investment Research, the service I use to speed up my technical analysis.
However, the Elliott wave analysis shows the present rise is quite advanced.
I'll post an analysis of NGG before the closing bell. I'm not going to take the trade, and I'll use a chart talk to explain why.
A full list of the first-round survivors may be read in "Wednesday's Prospects".
-- Tim Bovee, Portland, Oregon, July 2, 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
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.