Friday, September 19, 2014

Friday's Finalists: SFLY, GMCR, MMM, ALL

The Minnesota technology company 3M Co. (MMM) is the best potential trade out of nine symbols that made it past the early stage of analysis. It has given a bull signal.

Three other symbols made it to the finals, possible bull signals GMCR and ALL and a bear signal, SFLY.

Of the nine that made it past the first round of analysis, two failed confirmation by moving back within their 20-day prie channels: SWKS and ADSK.

Three had insufficient open interest on their options for use in constructing a bear position.

That left the four finalists, and there is little to differentiate them.

All are ranked neutral by Zacks Investment Research, the service I use to speed my fundamental analysis and to get a sense of Street opinion. Their charts are in line with their signals.

I next looked at the options, and that settled the choice. MMM alone of the four has a front-month at-the-money bid/ask spread in the single digits. The others were all in the double digits, which I find to be unacceptably high.

I'll be posting a full analysis of MMM as a potential bull play prior to the closing bell.

-- Tim Bovee, Portland, Oregon, Sept. 19, 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.

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