Tuesday, September 9, 2014

Tuesday's Finalists: DFT

Only one of the 16 symbols that survived my early analysis has survived into the finals. (See "Tuesday's Prospects".)

The stock is DuPont Fabros Technology Inc. (DFT), a Washington, D.C. real-estate investment trust paying a 4.77% dividend annualized at today's prices. It is ranked neutral by Zacks Investment Research, the service I use to short-cut my fundamental analysis and to gain insight into Street opinion.

I don't want to trade DFT under my shorter-term rules. A stock with a dividend that high goes best under my longer-term rules, which allow me more leeway to stay invested and collect the cash, despite bearish corrections. Also, with a REIT, I like to take a more leisurely look at the strategy and the portfolio -- it's not all charts and odds. That will work better over the weekend.

So I'll set DFT aside for another day, leaving me with nothing to analyze from Monday's market session. Both potential bull plays on my innovators supplemental list failed confirmation: GOOG and NICE, as did the potential bear play on my large-dap supplemental, SLB.

This is not entirely a tragedy; the lack of work gives me an opportunity to watch Tim Cook at Apple announce the new iPhone 6. Too exciting! (The event is at 1 p.m. New York time today -- streaming at www.apple.com.)

Here's how we got to this lazy day.

Of the 15 non-finalists in my analysis, six failed confirmation as they moved back within their 20-day price channels.

Six have charts that run contrary to their signals -- bull signal, bearish chart, in all cases.

Three, all bear signals, have insufficient open interest on their options to support a trade.

Therefore, no trade.

So that's a wrap.

-- Tim Bovee, Portland, Oregon, Sept. 9, 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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Based on a work at www.timbovee.com.

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