Weekend Strategy Review December 28, 2013 follow up

Posted by professor  at December 28th, 2013

I bought a half position in GPOR early Friday, when the PT indicators turned Green on the shorter-term bars.  The stock finished the day up 0.98 cents at 61.13.

With several energy related issues moving up the Member’s Watch List, I wanted to get involved with energy.   I also noted that Emeritus highlighted TOT again for the Honor Roll   Last week we saw what happened to the home builders when Emeritus started to highlight them.  He started with LEN, and then added PHM just before they started to move up.

The reason I’m doing this follow-up to my early WSR is to highlight a few important differences between the home builders and the energy stocks now that Emeritus is highlighting the latter.

When LEN and PHM were being highlighted, they were both moving off a TLB Pattern after a Rope Jump.  PHM had moved into an Uptrend, but LEN still had work to do.  Fellow home builder RYL had been marking time above its moving averages for months.  So basically, there were three turn-around candidates,on the Member’s Watch List, all with completed Blades.

All they needed was a few words from the Fed about keeping interest rates low, and they started to pop.

But it’s a little different with energy issues.  This weekend we can see a stock like CVR Energy (CVI) is near the top of the Member’s Watch List.  It too is coming off a TLB Pattern after its recent Rope Jump. But even though CVI is ranked high, it does not yet meet all of the criteria for me to establish a Basic Position in the stock.  It’s still in a downtrend and doesn’t have a Blade.  It still has work to do. So it’s only a trade.

On the other hand a stock like GPOR, which was also highlighted by Emeritus, stayed in an Uptrend after pulling back the past two months to form its Blade.  So when it turned Green on the Daily’s, I became very interested.   Hmmm? To add even more interest to the stock, a 7 point stick and Blade pattern has formed since last week. This small pattern could push GPOR to the 67 level if the S&P continues on its course toward 1860.

A stock on the MWL, with a Pattern and positive PT indicators. …Where have I seen this before?  I might also add that the stock has tight Bollinger Bands.

Johnson Controls (JCI), another stock highlighted by Emeritus as a possible trend candidate, dropped off the MWL on Friday after falling 0.40 cents.  The stock remains in an Uptrend, and still appears to be forming a nice Blade to support a move higher.  But now the P-volume has turned negative.  Before I can get interested in JCI again, I will need to see the P-volume turn around.

Have a great weekend.

That’s what I’m doing,

h

FAQ

All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.