No Trade

I have no potential new positions to analyze today. Last night I listed the six survivors of my preliminary screening of Tuesday's breakouts. (See the posting here.)

Two survivors, EHI and DHG, failed confirmation today by falling back within their 20-day price channels.

The highest volume survivor, KERX, had an earnings announcement within 30 days pop up on its calendar this morning.

And the breakout by BAK -- the Brazilian chemical company ADR -- was a result of its filing earnings with the SEC. (Earnings announcements by foreign countries don't always show up on the calendar.)

Under my rules, I don't trade breakouts that immediately follow earnings releases. I require a fresh, post-earnings breakout before I'll consider a trade.

The two remaining symbols are low-volume specialized exchange-traded funds.

DTK -- the Deutsche Bank Contingent  Capital Trust III 7.6% preferred fund -- on average trades 105,000 shares a day. Its quarterly dividend yields 6.75% annualized at today's prices.

FM -- the iShares MSCI Frontier 100 Index Fund -- on average trades 27,000 shares a day. The fund trades stocks in pre-emerging markets.

The four biggest countries among its holdings are Kuwait, Qatar, Nigeria and the United Arab Emirates. The small fry are Pakistan, Kenya, Oman, Argentina (oddly), Kazakhstan and Vietnam. Stock in banks and other financial companies accounts for 54% of the fund's holdings.

It's actually an interesting idea -- get on the emerging market bandwagon before the market merges. Although, the focus on finance rather than industry is something of a tip-off that it might be overly kind to call these markets "pre-emerging". "Maybe emerging someday but maybe not" might be the more accurate description.

Anyhow, I have no interest in either DTK or FM, and won't be doing further analysis on them today.