The lone bull signal EPI failed confirmation, as did bear signals XEC and BBBY.
ANF confirmed its signal by continuing to trade below its 20-day price channel. However, the front-month at-the-money bid/ask spread on calls is 12%, and I require single-digit spreads for my trades.
I won't be opening new positions based on Thursday's markets.
I analyzed four potential trades keyed to earnings announcements and have opened positions in three: DAL, JNJ and MS, all bearish.
I'm considering HAL as a bear trade. However, it moved against the downtrend at the open today, so I'm deferring a trading decision until the chart achieves clarity.
See the analysis, "DAL, HAL, JNJ, MS: Volatility plays".
-- Tim Bovee, Portland, Oregon, Jan. 16, 2015
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 volatility trading rules can be read here.
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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
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