Monday's Prospects

On Friday, Oct. 25:

Of 2,399 stocks and exchange-traded funds in this week's analytical universe, 66 that are traded on the major American stock exchanges broke beyond their 20-day price channels, 48 to the upside and 18 to the downside.

Three symbols traded over the counter broke out, two to the upside and one to the downside.

Fifteen symbols traded on the major exchanges survived my initial screening, 12 having broken out to the upside and three to the downside. The upside breakouts were BMS, GHL, ISCA, LRY, MEI, MKC, MTW, PNR, RTN, SONC, VNQ and WOOF. The downside breakouts were BSAC, NTGR and USTR.

Update: Five of the upside breakouts and all three downside breakouts broke out immediately following an earnings announcement and won't be eligible for trading until Tuesday, and then only if they stage a fresh breakout beyond the price channel boundaries at that time. 

The surviving major-exchange breakouts, all to the upside, are GHL, ISCA, LRY, MKC, PNR, SONC and VNQ

No symbols traded over the counter survived my initial screening.

Earnings season began Oct. 8. The exclusion rule in my trading plan forbids me from opening new positions in stocks within 30 days of an earnings announcement. This means that many symbols are being removed from my prospective trades list during initial screening.

I shall do further analysis on Monday, Oct. 28.

The symbols I'm analyzing are mid- and large-cap stocks having analyst coverage, as well as selected exchange-traded funds. I screened them for...

• even or greater odds of a successful trades in the direction of the breakout since the present uptrend began on the S&P 500 weekly chart, on Oct. 4, 2011,
• an average yield of 3% or greater in the direction of the breakout,
• and absence of an earnings announcement within the next 30 days. 

For bear signals, I also screened to ensure the ability to do a trade, either because of the presence of options whatever their open interest or sufficient volume to allow for the short sale of shares.

References

My trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.

Disclaimer

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.