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Short Chevron: CVX
Tell A Friend about this article --> Click Here

 

Thomas Kee
StockTraders
Daily.com


Although the Market has likely bottomed near term, The Investment Rate tells us declines will resume eventually. We are near term Bulls, and long-term Bears. Find out why by reading our Investment Rate model. From there, use our proactive trading tools to automatically trade QID and QLD; make money regardless of Market direction. We offer near term, midterm, and longer term strategies designed with the primary goal of wealth preservation, but our returns aren’t bad either.
Click here!

Every week I issue a recommendation to trade a specific stock. Sometimes it is long, and sometimes it is short. The recommendations are always tied directly to my correlated market analysis. In 2008, this strategy earned over 60%. Thus far in 2009, we are up over 26%. There are only a few trades per week.
This week, the Stock of the Week is Chevron. Here is the specific recommendation, but it is subject to change during the week:

CVX (Short) Resistance Plan: Short near 66.14, target 63.27, Stop Loss @ 66.4

Rationale: As the market moves closer to mid-term resistance, a pullback becomes more and more likely. If a test of mid-term resistance occurs early in the week, and if it holds, I expect a pullback to follow. I have based this call on that probability.

The derivation of this recommendation can be found by reviewing the link below. It is a 10-minute presentation that describes the correlated market timing and stock selection process I used to determine that CVX was a good choice for this week’s selection. You can use the same approach to find ideas yourself going forward.

http://stocktradersdaily.com/sow/sow.htm

Good Trading.

Thomas H. Kee Jr.
www.stocktradersdaily.com

 

Thomas H. Kee Jr. is President and CEO of Stock Traders Daily, founder of The Investment Rate, architect of the ATAP Program, and supporter of proactive trading strategies.  His work can be found in Reuters, Barron’s, MarketWatch, and other Financial Media Channels.