The parabolic sar moved into bear mode today on a 1.6% decline intra-day. The signal has been extremely whippy, with three days bearish, three days bullish, and now another baer signal with price confirmation.
So, outta there.
The stock sold for $9.09, up 1.1% from the entry price on March 25. I'll collect a 12¢ dividend on April 28, so that makes the net gain 2.4%. Not too shabby for a month's work.
I'm often a bit slower to trade in and out of dividend stocks. In this case, there were some considerations that swung me over to the exit side.
The macd is declining at a rapid clip, as is the stochastic.
Also, AOD has heavy exposure overseas. That, to me, means Greek debt might be a factor. As much as I've denigrated the Greek crisis as a motivator for broad movements in the U.S. markets, I do recognize that it can be a factor for some stocks.
The average directional index for AOD, in common with many high-dividend issues, is extremely low at 15, meaning the whipsaws are likely. So I'll be prepared to re-enter upon signs of an uptrend. A move above the recent high of $9.36 on the three-month daily chart would be a good signal for my re-entry.
Disclaimer
Tim Bovee, Private Trader tracks the 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.
Options as a Strategic Investment is a one-stop source of practical information, clearly presented, about the the trader's most important tool for managing risk. This book occupies an important place on my desk.
This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.
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
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