Of the four potential small-lot shares trades coinciding with earnings announcements, one qualifies for a trade. SUI has both a sufficient upside momentum as measured by the MACD histogram and a b bullish Elliott wave count on the chart.
Two -- TSE and AET -- fail to qualify for a trade because of both an downtrending or insufficiently uptrending MACD histogramand because of downtrending Elliott wave analysis.
A third, ANIP, fails on the MACD but qualifies on Elliott. I require that both confirm the uptrend, so I the symbol.
Of the three potential small-lot shares trades that moved above their 20-day price channels, both ATTO and INVA have qualifying MACD histograms and Elliott wave counts. A third, PXD, qualifies on the MACD but fails with Elliott.
I had listed GLD as near a MACD histogram breakout to the upside, qualifying it as a small-lots shares trade. However, the MAC remains below the zero-line. I'll continue to keep an eye on it.
Bottom line: I intend to do a full analysis of SYF and LQD as potential options trades. I shall trade shares of SUI, ATTO and INVA using the small-lot strategy.
-- Tim Bovee, Portland, Oregon, Aug. 1, 2016References
by Antonio Garcia Martinez
Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.
Small Lots: A new strategy discusses the thinking behind the analysis that identified these trades and can be read here. The symbols noted in this post are intended fortrading on a commission-free platform such as Robinhood Financial.
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