Two others, both bear signals, made it past the initial rounds (see "Wednesday's Prospects") but upon closer examination, were found wanting.
ADT has option spreads that are too wide for me to use in constructing a bear position.
BBBY invalidated its bear signal immediately upon the opening bell. After announcing earnings, the price moved up sharply and gave a bull signal.
Of the two finalists, the bull signal, SLXP, has option spreads that are too wide for trading. Although options aren't an automatic disqualifier for potential bull plays, wide spreads mean that I can't build a leveraged position, which is my preference.
The fund KRE has a downtrending chart in line with a bull signal, and options that I can trade. I shall take a closer look at it prior to the closing bell.
-- Tim Bovee, Portland, Oregon, Sept. 24, 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
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.