Wednesday, October 29, 2014

Wednesday's Finalists: VALE

None of the 13 symbols that survived my first round of analysis. (See "Wednesday's Prospects".)

All but one had charts that were insufficiently trending in the direction of the signal to support a trade. The one exception, FAZ, is a bear fund that moves inversely to the NASDAQ 100 index; this is not the sort of symbol that I ever trade, as there are better ways to be a contrarian.

I next turned to my list of innovators and ran into the same condition. Three survived the early rounds of analysis. All of these also had insufficiently bullish charts to support their signals. (Note that this is a correction from the initial version of the Prospects posting, wherein I omitted GE.)

By "insufficiently bullish" I mean that the price was below near-term resistance, meaning that the signal could have been part of a contrarian move within a counter-trend. That would be set up for a whipsaw. So I need to see that breakout beyond resistance before going any further.

One stock with liquid Weeklys options, the Brazilian mining company Vale SA (VALE), announces earnings prior to the opening bell on Thursday. I'll post an analysis today.

-- Tim Bovee, Portland, Oregon, Oct. 29, 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. My very short term volatility trading rules 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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