Monday, November 24, 2014

Monday's Finalists: COP, TLLP, ITUB, ECL, ADSK, JMEI, TIF

It always astounds me with a fine collection of finalists all fail to make the grade. I am astounded today.

Many symbols head it through the first round of analysis described Sunday in my post, "Monday's Prospects".

Among the survivors from Friday's trading, TLLP and ECL have an open interest distribution that is unable to meet my needs -- double digits rather than triple for most strikes.

COP and ITUB came closer to making the grade but their charts are insufficiently bullish to justify a trade.

Also giving a bull signal on Friday was ADSK from my list of innovative companies. ADSK's success rate for bullish breakouts over the past year is been only 40%, based on five completed signals.

While the win/yield spread is a respectable 6.9%, I'm not willing to play it except as a position under my longer-term rules, requiring that stock shares be held for a year. Entry under those rules depends upon a 12-month moving average cross system. ADSK's present bull phase began in August 2013, and so bullish entry must wait for a cross below the MA12 followed by a cross above.

One symbol, JMEI, gave a bear signal on Thursday as result of an earnings announcement and so came under consideration today under my special rules for earnings. It's bid/ask spreads proved to be too wide to meeting my requirements.

Also, a number of companies with volume of 1 million shares a day or greater were on the calendar to announce earnings Monday after the close and Tuesday before the open, making them potential volatility plays under my very short term rules.

However, all but TIF failed to make the grade, with because of an overly wide bid/ask spread on their options or volatility below the 60th percentile of the range traced by the most recent rise. I've analyzed TIF this morning in "TIF: Volatility play".

That's it. No more analysis planned today.

-- Tim Bovee, Portland, Oregon, Nov. 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. My very short term volatility trading rules 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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