Wednesday, May 21, 2014

Wednesday's Prospects: Round 2

None of the five survivors of my first round of analysis (see "Wednesday's Prospects") made it past the second round.

Three failed confirmation by moving back within their 20-day price channels: GFI, WOOF and PH.

The other two, both of them breakouts to the downside, have insufficient open interest and overly wide bid/ask spreads on their options for me to construct a bearish position: ICPT and VNCE

I then turned to the supplemental list of large-cap bear signals, which ignores the historical odds of a successful trade.

One, AES, has insufficient open interest on its options for use in a bear play.

CAT is the better prospect, but I see its chart as being in an upward movement and insufficient evidence that it really is reversing to the downside.

I'll add CAT to the Watchlist but won't be doing an analysis today.

I'll spend part of my time looking closer at NYMT, which lacks the growth projections needed to construction a price/earnings/growth ratio (PEG), an important fundamental indicator in my view. I'll update yesterday's analysis, "BXMT and NYMT: Two mortgage trusts", with my findings and give notice of the update in my Outcomes post at the market close.


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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