Strong Stocks & Trading Results for Sep 13, 2018
All indices gapped up at open. Since our system depends on short term pull back there was no trade entry opportunities in the morning. But as the day progressed some strong stocks started pulling back.
There was an overnight call position in COST. That was closed at high of the day.
Three call positions were entered today in Costco (COST), Home Depot (HD) and Align Technology, Inc (ALGN). Since sell to close signal have not yet triggered, they are going to be carried overnight.
Following table gives details of all the trades opened and closed.
List of stocks that have higher probability of moving higher on Sep 13, 2018. These have been identified by a screening system that has been detailed at the bottom of this report.
- Apple Inc - AAPL
- Amazon com inc - AMZN
- Aetna Inc. - AET
- Mastercard - MA
- Berkshire Hathaway Inc. - BRK.B
- Home Depot - HD
- Costco Wholesale Corporation - COST
- ServiceNow - NOW
- Ulta Salon, Cosmetics & Fragrance, Inc. - ULTA
- Illumina, Inc - ILMN
- S&P Global, Inc. - SPGI
- Align Technology, Inc. - ALGN
- The Sherwin-Williams Company - SHW
- Humana Inc - HUM
- Intuitive Surgical, Inc. - ISRG
Implied Volatility (IV) and Average True Range (ATR)
IV over ATR is a simple measure of price paid per unit move of the underlying. Lesser the value of this ratio it is better. Quotes table above have this measure listed for each stock.
Relative Capitalization of Strong Stocks
- Generally, capitalization of a stock is directly proportional to volume traded.
- More the volume more liquid the stocks/options will be.
- Moreover, stocks that are traded with high volume will have their options in several exchanges
- Which in turn help with liquidity in options market.