Post feedThis Weeks Top Ten List
Assuming we will be leaning bullish this week, I developed a list of upward biased stocks to research for trades this week. These look like they were bouncing off some level of support or reaching new highs. Since we are seeing a bit of a bounce from the market as I mentioned in an earlier post today, perhaps these stocks might provide some upside in this potential move. Remember the news coming down the pipe this week before trading anything!1. USNA- Good company in a upcoming group. Looks like a bounce, indicators starting to confirm.
2. CERN- Strong performer recently, looks like it might be poised to head upward again.
3. BAM- Great performing stock over longer periods of time. Looks like it is ready to start making new highs.
4. CTSH- Amazing fundamentals...good news today. Ready to make new highs.
5. SEIC- Re-testing the old resistance of an ascending triangle. Good uptrend.
6. AMG- Breaking out of a bull flag pattern? Looks like a bounce either way.
7. NFG- Uptrend, good group....not very volatile. Conservative trade for the week.
8. GMR- Strong group, perhaps at support.
9. OMM- Strong group, perhaps at support.
10. OKE- Another strong group, perhaps a support bounce.
After tomorrows session on Price Patterns, I will list the patterns on our list for this week. I found a ton of triangles to watch. Plus, many of the patterns out there have not broken out yet.
One more thing. I noticed a few of you made contributions to the Autism walk. I appreciate your kindness and generosity. My son thanks you also.
Back in a few...
What is up with IVGN today. Up 1.93 to close at 61.23. Busted through resistance level of 60 (no significant volume); and the 60 call we sold in the Bear Call Spread set up. still shy of the next resistance level and break even point. Comments?
Posted by
Anonymous |
8/28/2006 05:51:00 PM
Hi Jeff. Great Blog. I just started reading and can see there's a lot of worthwhile reading.
One question: It seems that a number of the stocks you discuss are fairly low volume stocks: AMG, SEIC, BAM, USNA for example.
At what number and how exactly do you decide when a stock is just too lightly traded(illiquid) to justify playing options on it. They'd be more likely to be overpriced or have really wide spreads.
Many thanks.
Matthew
Posted by
Anonymous |
8/29/2006 11:30:00 AM
Matthew,
According to exchange definitions, only one stock (USNA) would qualify as be illiquid, and still trades a decent average volume. Nonetheless, you do not have to trade anything that does not meet your rules...so if any of the option spreads are too wide, you are in the drivers seat and can avoid dangerous situations at any time! All these stocks met my requirements and there will likely be a difference between what we look for in a trade. Thanks!
Posted by
Option Addict |
8/29/2006 12:04:00 PM