Saturday, May 7, 2016

Monday's Prospects

On Friday, May 6:

Of 476 large-cap stocks and exchange-traded funds in my analytical universe, six broke beyond their 20-day price channels, three in either direction.

No symbols giving trading signals with high odds of success survived initial screening.

One symbol with a trading signals having low odds of success survived initial screening, having broken out to the upside. Low-odds symbols are candidates for non-directional trades.

I already have a position on the one survivor of initial screening, an earnings play on MCD, and so shall not entertain opening another position. Read the analysis here.

There are no prospects for trades coinciding with earnings announcements.

With MCD off the table and lacking further prospects, I shall do no further analysis on Monday, May 9.

The present earnings season is trailing off and will conclude on May 20. The next earnings season will begin on July 11 and last for six weeks, through Aug. 19.

The Breaking Point: Preparing for the Coming Global Shift
by James Dale Davidson


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, suggesting a directional or non-directional trade, respectively, I next screen for 1) suitability of the options grid, including open interest of three figures or greater on the strike prices I would need to use to build a position and 2) the absence of an earnings announcement within the lifespan of the like options series I would trade.

I defer until the day of a possible trade a final screen for implied volatility in the 60th percentile or greater of its most recent range.

-- Tim Bovee, Portland, Oregon, May 7, 2016


Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.

I can be reached via comments on Private Trader posts or by email at


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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.

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Based on a work at s ss'ss

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