One, MBT, was a bear signal with insuffient open interest on its options to support a bear play.
NMBL had its IPO last December and so fails to meet my rule requiring that a stock be traded for at least a year before I open a position.
That left two, a bull signal on SDLP and a bear signal on KRE.
Both have charts that match their signals, and their average volumes are about the same. SDLP has a neutral rating from Zacks Investment Research, the service I use as a short-cut for fundamental analysis, while KRE has a bearish rating, which is in line with the signal.
Also, SDLP is a corporate stock, while KRE is an exchange-traded fund, tracking regional banks. Adding a fund to my portfolio is a plus because it increases the diversity of my holdings.
I'll do further analysis on KRE and post it prior to the closing bell.
By the way, the three symbols on my supplemental list of high-volume potential bear plays all failed confirmation.
See "Friday's Prospects" for a full description of my first round of analysis.
-- Tim Bovee, Portland, Oregon, July 18, 2014
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.License
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Based on a work at www.timbovee.com.
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