Thursday's Prospects

On Wednesday, Nov. 6:

Of 2,376 stocks and exchange-traded funds in this week's analytical universe, 75 that are traded on the major American stock exchanges broke beyond their 20-day price channels, 17 to the upside and 58 to the downside.

Seven symbols traded over the counter broke out, four to the upside and three to the downside.

Seven symbol traded on the major exchanges survived my initial screening, three having broken out to the upside and four to the downside. The upside breakouts are FBP, GS and IMAX. The downside breakouts are COG, EQT, ITMN and TSU.

One symbol traded over the counter survived my initial screening, NTDOY, having broken out to the upside.

Earnings season began Oct. 8. The exclusion rule in my trading plan forbids me from opening new positions in stocks within 30 days of an earnings announcement. This means that many symbols are being removed from my prospective trades list during initial screening.

I shall do further analysis on Thursday, Nov. 7.

Methodology

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...

• an average yield of 3% or greater when adjusted for the odds of a successful trades in the direction of the breakout since the present uptrend began on the S&P 500 chart, on Oct. 4, 2011, calculated as average yield multiplied by the odds,
• and absence of an earnings announcement within the next 30 days. 

For bear signals, I also screened to ensure the ability to do a trade, either because of the presence of options whatever their open interest or sufficient volume to allow for the short sale of shares.

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.