All but two of the others had charts that were at odds with their signals -- bull signals in bearish charts.
The two exceptions were both bear signals, VHI and USM. However, they lack sufficient open interest on their options for me to structure a bear play on either.
Therefore, no symbols survived my second round of analysis.
I next looked at the two symbols that made my supplemental lists of highly liquid bear signals that need not have passed my odds test. Passing means that more than half of the bear signals completed in the past year have been profitable.
One of them, S, failed confirmation. The other, VRX, passed confirmation and has a sufficiently bearish chart, although with only a neutral rating from Zacks Investment Research, the service I use to short-cut my assessment of a company's fundamentals.
I'll take a closer look at VRX to see whether it has any redeeming characteristics to make up for its lack good odds and shall post an analysis of it does. Otherwise, I plan no full write-ups today.
-- Tim Bovee, Portland, Oregon, June 13, 2014
My shorter-term trading rules can be read here. My longer-term 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 decisions for his or her own account, and take responsibility for the consequences.License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
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