Unanalyzed Part Two

Earnings was the main barrier to stocks making the cut in my analysis of the high-volume corporate issues.

I hate news surprises. I've been burned to a crisp by news surprises, most recently by PALM in the midst of a covered call.

One way to lessen the chance of a news surprise is to trade well out from earnings. My rule of thumb is for earnings to be at least two weeks past the options expiration date, and maybe three if I'm feeling nervous, as I am these days.


Here's the list. All are psar bear signals.

Rejected because of close-in earnings:

• RF
• XOM
• AMD
• CMCSA
• VLO
• DOW
• ABX

Rejected because the move is counter-trend:

• CSCO
• DIS

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: green for above 30-up, red for 20-down, yellow for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.