All but one of the others had options grids unsuitable for constructing a leveraged and hedged position due to low open interest or high bid/ask spreads.
That leaves AAL, a bull signal, as the sole finalist from Tuesday's trading. As I noted on Tuesday in an essay, "Macro Risk: The path not taken", I'm not opening new bull positions because of my assessment of the Federal Reserve's next step and its implications for the markets.
(See "Wednesday's Prospects" for a full list of symbols surviving the early rounds of analysis.)
LUV from my list of innovative companies gave a bull signal and would be suitable for analysis as a bull play under my longer-term rules for shares. However, my allotment for that sort of trade is filled so I'm passing it by.
I plan no analysis today based on Tuesday's markets.
-- Tim Bovee, Portland, Oregon, March 18, 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.License
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