Friday, October 3, 2014

Friday's Finalist: FTK

The Texas supplier of oil field drilling and production equipment Flotek Industries Inc. (FTK), with a bear signal, was the only symbol to make it past my first round of analysis.

And FTK has faltered in the finals, as well. It confirmed Thursday's bear signal by trading below the 20-day price channel today, and the three-year chart is definitely bearish, as is the company's ranking from Zacks Investment Research.

The problem is technical. For my purposes, a bear position can only be built out of options, and the front-month, at-the-money bid/ask spreads on FTK options is extremely wide -- 32% on the puts.

So FTK isn't tradable under my preferences, and I won't be doing further analysis on it or any symbol that gave a bear or bull signal on Thursday.

-- Tim Bovee, Portland, Oregon, Oct. 3, 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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