| trend | adx | psar | pps | macd | macd trend | sto | sto trend | |
|---|---|---|---|---|---|---|---|---|
| JNJ $64.51 |
The average directional index is margine, at 23.
JNJ has been bounded by $66 on the high side and $62 on the low side, with a few short-lived breakouts, since November 2009.
A June iron condor, with maximum profit at expiration between $60 and $67.50, with wings $2.50 wide, provides a 45¢ premium credit, not to terribly shoddy. However, the maximum loss is $2.05, so the reward/risk ratio is really radically rotten.
Bottom line: It's a decent play for traders untroubled by the outsized potential loss. That's generally traders confident they can nimbly skip out of the position before that loss is realized, a not unreasonable approach.
For traders who tend to be less nimble, who find it harder to exit a trade, then it's probably less attractive.
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.
Skynet Panic of May 6
Panic Looks Like This
Skynet Panic Poisons Technical Tools
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: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
- adx: orange for above 30-up, blue for 20-down, purple 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.
New to private trading? Here's a look at How to Become a Private Trader.
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