And that's with the scan expanded to include stocks and exchange-traded funds with a 500,000 share volume and a price of $5 and up.
I think it's pretty much as I said it in the Morningline: It's Friday. It's spring. People don't want to be at their trading terminals.
Here is a list of issues that didn't make the Watchlist because of low average directional index readings, and the reading itself. The signals are all parabolic sar bull signals, with the exception of BGZ, an inverse etf keyed to the S&P500. It's signal was a bear, and that's bullish for the S&P500.
- EWW, 22
- IVV, 20
- SDS, 27
- SPY, 20, along with related etfs BGU, 24; BGZ, 27; and SSO, 25
- SYK, 28
- WFT, 17
- XLB, 14
A reject listing just means that the stock doesn't meet my technical criteria.
I'm looking for directional trades that are in line with the larger trend, as seen on a three-month daily chart. That means I want a bull signal within a bull trend, after a brief pause or retracement. Or a bear signal in a bear trend.
A low adx means that the trend is either weak, or non-existant. The lack of a trend means the signals I rely on are more likely to give false readings, to whipsaw.
So I want to see an adx of 30 or above before I'll go directional. Having said that, a low adx might work just fine for a covered call, or a sideways options structure like an iron condor.
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