Three symbols traded over the counter broke out, all to the upside.
Within my analytical universe, 2.4% of symbols gave bull or bear signals, compared to 11.4% the prior trading day.
The ratio of bull to bear signals was 4.6:1, reflecting the markets' bullish bias, down from 85.3:1 the prior trading day.
Because of a large number of bull and bear signals, on Wednesday, I raised my minimum odds and yield score requirements to narrow the field. I've returned them to their normal values for Thursday's analysis.
No symbols traded on the major exchanges survived my initial screening.
No symbols traded over the counter survived initial screening.
The cause of failure in both sets of symbols was primarily low odds and yields, with a few symbols excluded for earnings within the next 30 days.
The next round of earnings begins on Oct. 8, coming within the exclusion rule that forbids me from opening new positions in stocks within 30 days of an earnings announcement. This means that increasing numbers of symbols will be removed from my prospective trades list during initial screening.
I shall do further analysis on Friday, Sept. 20.
The symbols I'm analyzing are mid- and large-cap stocks having analyst coverage, as well as selected exchange-traded funds. I screened them for...
- even or greater odds of a successful trades in the direction of the breakout since the present uptrend began on the S&P 500 weekly chart, on Oct. 4, 2011,
- a yield adjusted by those odds of 5% or greater,
- and absence of an earnings announcement within the next 30 days.
My cut-off point for bullish bias is a ratio of bull to bear signals of 2:1 or greater, and for bearish bias, 1:2 or smaller, rounded to the nearest whole number.
My trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.
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 decision decisions for his or her own account, and take responsibility for the consequences.