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Short Chevron (CVX)

|Includes: Chevron Corporation (CVX)

Short Chevron: CVX

Every week I issue a recommendation to trade a specific stock.  Sometimes it is long, and sometimes it is 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