Wednesday: No Trade

My analysis last night produced five potential trades. However, all were to the bull side, and I have suspended the opening of new bull positions until Congress and the White House reach a decision on continuing to pay the federal government's debt after Oct. 17.

(See "Wednesday's Prospects" for last night's analysis, and "Rolling away from risk" for a discussion of how I'm dealing with the debt-ceiling uncertainties.)

I then turned to the high-volume bear breakouts from Tuesday that failed to pass my initial screening, hoping to find a trade.

Only one symbol, HL, has sufficient volume to support options liquid enough to meet my standards. However, the $3.09 price for the shares makes it difficult to put together a workable bear put options spread.

Therefore, I won't be opening any new positions today. My ability to trade is being hindered in two ways. By choice, I'm avoiding political risk from Washington, judging all of that risk to be to downside. And the earnings season opens Oct. 8, which means that a lot of symbols are now within my earnings exclusion zone; I don't open a new position in a stock within 30 days of its earnings announcement.

References

My trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.

Disclaimer

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.