Friday, May 9, 2014

Friday's Prospects: Round 2

Of the six symbols that made it through my first round of analysis, two failed confirmation in the second round: The bull signal from YPF and the bear from FI.

One, the bear signal from UAN, was rejected because it has a bullish rating from the analytical house Zacks.

That left three, all with charts that match the direction of their signals.

The bear signal on CIE isn't supported by that symbols liquidity; the open interest is too or on most near-the-money strikes and on one, open interest is sufficient but the bid price zero, so I can't trade it. Without liquid options, no bear position is possible, so CIE fails the second round.

Large-cap AAL is a greater selection of options and smaller bid/ask spreads than does small-cap DAVE. Moreover, AAL has a bullish rating from Zacks while DAVE's rating is merely neutral.

For those reasons, I've chosen to do a full write-up on AAL and shall post it before the closing bell today.

See "Friday's Prospects" for a description of the first-round analysis.


My shorter-term trading rules can be read here. My longer-term 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 decisions for his or her own account, and take responsibility for the consequences.

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