Monday, March 23, 2015

Monday's Finalists

Three symbols failed confirmation out of the 30, all bull signals, that survived the early rounds of analysis. The three -- VNO, INFA and AWR -- all dropped back into their 20-day price channel rather than showing continued momentum to the upside.

All but one of the others had options grids that fail to meet my needs for constructing leveraged, hedged positions, mainly because of insufficient liquidity. See "Monday's Prospects" for the early rounds of analysis.

The one finalist is CLX.

With implied volatility running low in comparison with the prior rise and also in comparison with the S&P 500, my present rules would require me to trade CLX as long option spreads, bought with a debit and expiring in July.

My rules are in transition, however, as I study ways to bring my volatility rules, by far the most profitable arrows in my quiver, to more trades. Rather than tie up funds in a position with a structure that, in my experience, tends to be less profitable, I shall pass on the trade and focus on my volatility studies.

I considered CLX as a paper trade to test my volatility rules. However, it lacks Weeklys among its options inventory and so doesn't qualify at this point on the calendar.

So no analysis and no trade, real or on paper, for CLX. I shall be looking at paper trades on other stocks as I continue my volatility studies.

-- Tim Bovee, Portland, Oregon, March 23, 2015


My price channel trading rules can be read here. My long-term share trading rules can be read here.  My volatility trading rules can be read here. The channel rules are based on the classic Turtle Trading rules, which can be read here.

Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.


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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 decision decisions for his or her own account, and take responsibility for the consequences.

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Based on a work at s ss'ss

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