Wednesday, November 6, 2013

Wednesday's Prospects: No Trade

None of the seven symbols that survived my initial screening is worth a further look. (See "Wednesday's Prospects".)

Three moved back within their 20-day price channels, failing confirmation. They are BBVA, SSW and VPRT.

Three bear signals lack sufficient options liquidity for a bear trade --- CHU, EBR and SKX -- although they are eligible for short sales. However, I prefer options for short positioins.

ALU gave a bull signal but has a negative return on equity and has reported losses the past seven quarters. I don't go long on losses.

My initial screening was based on odds from when the present trend began, back on October 2011.

I then turned to my alternate analysis, using odds from last May, when the markets began struggling to attain new highs. That produced one additional prospect, a bull signal on NAV. However, it has a bearish rating from Zacks, and I prefer that Zacks and the trade direction be aligned.

Bottom line: I won't be opening any new position today.

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.

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