Monday, November 3, 2008

These are the stocks that are passing at least three of my five filters, for the week of November 3. There were no IBD Supply/Demand stocks this week. There were only three IBD top-ranked stocks.

SymbolTop RankedZacks PEG SuppDem VLIBD Stock checkup
CELG1 1 1A+
EZPW111  A+
PRGO 11 1A+
AMED 11 1A+
BCR 11 1A+
AXYS 11 1A+
ARO 11 1A
JOSB 11 1A
CLHB 11 1A
GWR 11 1A
MATK 11 1A
CSX 11 1A-
BIG 11 1A-


VMI is off the core list.

Core list (with n of 10 weeks passing):

SymbolPassing weeks Earnings
ARO10Earn 3-Dec
EZPW9Earn 6-Nov
AMED9Earn 28-Oct
FLIR8 
CELG8 
URBN6Earn 13-Nov
WAB6 
OSIP6 
PRGO6Earn 6-Nov
AXYS5 
MANT5Earn 29-Oct

moving down this week
moving up this week
new this week

The Market remains in Red Light mode according to the 1-2-3 model. The Inflation Model has remains at a negative two inflation stars ("deflation").

The markets showed a remarkable turnaround last week. After a quick gander at the charts, it looks like the NASDAQ has bounced off of 1500 and is approaching a gap at 1900. The big question would be whether it can rise above that gap. My thinking is that it will test it but will have difficulty penetrating it.

The S&P has shown a similar bounce off of 850, to close at 968.75 last Friday. However, it does not have the gap corresponding to the Nasdaq. Instead, it looks like overhead resistance at 1050.

I am still waiting to see what the markets will do. With volatility at extreme highs (above 80 last week), it would seem to make sense to sell calls (and buy further-out calls for protection). Before the market open on Monday, an S&P SPX Dec 1000/1050 bearish call spread will sell for $1915, with a risk of $3085. This would stand to profit if the SPX ends up at or below 1000 by Dec 19 or if the volatility falls. The bear spread I'm describing is not for everybody, but it would make money if things don't go up much, if they stay where they are, or if they fall.

Have fun trading this week.

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