Of 513 large-cap stocks and exchange-traded funds in my analytical universe, 19 broke beyond their 20-day price channels, 17 to the upside and two to the downside.
Eight symbols with high odds of success survived initial screening, all having broken out to the upside. High-odds symbols are candidates for directional trades.
Seven symbols with low odds of success survived initial screening, five having broken out to the upside and two to the downside. Low-odds symbols are candidates for non-directional trades.
There are no prospects for trades coinciding with earnings announcements under my Volatility Rules.
I shall do further analysis on Monday, May 11.
Earnings season ends its six-week run on May 20. Under the exclusion rule that forbids me from opening new positions in stocks within 30 days of an earnings announcement, increasing numbers of symbols will be removed from my prospective trades list during initial screening. The rule doesn't apply to trades under my Volatility Rules.
Potential trades under my Volatility Rules, keyed to events
The dates are those of the events, all of them earns announcements. Events prior to the opening bell are marked "am", during the trading day "mid", and after the closing bell "pm".
The stocks in my analytical universe all have analyst coverage through the stock-ranking company Zacks Investment Research. Not all of the exchange-traded funds are so covered.
I screen the symbols for historical odds of a profitable signal in the direction of the breakout for the past 12 months.
For symbols whose odds of success are in the top or bottom thirds, I next screen for suitability of the options grid and the the absence of an earnings announcement within the next 30 days.
-- Tim Bovee, Portland, Oregon, May 9, 2015
My 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 decision decisions for his or her own account, and take responsibility for the consequences.License
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