Smart Money magazine generally offers some good stocks to consider investing in. I’ve been reading through the September issue and haven’t found any stocks that exactly match my research for good opportunities to trade on yet. I’m not saying they are bad stocks or they’ve done poor screening, but either the charts are hard for me to read or the premiums aren’t high enough to warrant selling puts. I liked a piece they had on Tyson (TSN), but yesterday they warned earnings would fall and the stock dropped 15% in the past two days on high volume. Maybe that’s just a sign of what’s going on with the market now. The easy picks are just scarce. I’ve already sold a put on PCU which was another one featured.
Here’s what I’m seeing from one of their latest screens in case anyone else has further insight on these:
Affiliated Managers Group (AMG): Caught at point of downward trend of lower highs and upward trend of higher lows. I want it to break strongly above 115 before I get in.
Anixter International (AXE): Broke the trend line of lower highs and is riding some higher lows, but might not be able to break above the ceiling set earlier around 78. Going above 78 could make it a buy. 75 could be supoort again too. If so, AXE could be worth a trade.
Ball Corp (BLL): The option premiums aren’t rich enough for me to sell. The chart is better though and if it breaks 54 could be a good buy. A call buyer might consider this one.
Cal Dive International (DVR): This could be the best of this little pack. It broke its short term trading channel yesterday, but is dropping back towards it today. I want to see how it reacts tomorrow and maybe Monday before trading on it. The premiums are high enough to possibly make the risk worth the trade.
Ceradyne Inc (CRDN): CRDN gapped down in late August and might have found its footing recently on an upward trending line, but has faltered the past couple of days. I’ll keep eyeing this one too. Even the $5 out-of-the-money puts could be worth a trade. That also coincides with a potential support level.
Laboratory Corporation of America Holdings (LH): The premiums aren’t worth selling puts, but the chart shows a good recovery. I want to see it over 80 before making a trade on it.
Polaris Industrials, Inc (PII): This chart isn’t ideal. It took a big fall in July and has been relatively flat since then. On the other hand it found support at 45 and has inched up since then. The October 45 puts might not be a bad move, but it’s still dealing with a downward sliding trend line of lower highs.
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The other day i typed up a comment but it didn’t post through again. Hopefully, this one makes it.
I said the usual that your Put posts were very reasonable and good posts.
For today, the futures are down early, which is good for me as I am into the indexes heavily with puts. If it carries through and I get any success I’ll share it with you. Thanks again for this blog which allows us to share your investing journey and for us to get our words off our chests so to speak, at times.
Thanks Kadena, good luck on your index puts. I should have hedged some, especially after I charted the QQQQ and said it was due for a pull back. Listening to my own advice would serve me well sometimes.
AMG broke to about 120. Would you buy now? I do think there is strong support at 115. I understand every stock went up with the 400 point dow rally the last 2 days. I did notice with this move that there was no spike in volume which is an indicator I prefer.
AMG is an interesting one. I had a trade trigger set to email me when it broke 115 and I haven’t moved on it yet. I agree that the lack of volume is concerning. I’m really somewhat discounting certain stocks’ moves from the past two days until I can see how they react over the next couple of days. AMG is now at the high end of its p/e range which is another downer. The positives are that it broke above the longer term down trend line I didn’t like before and even closed above the shorter upper trend line. I’d like to see it above that upper line for 2-3 days before I get in since there’s so little volume to support the rise. It’s like sellers took a nap and the only remaining traders bought it up.
AXE could be a better one since it jumped yesterday on better volume. Today could be a good decision maker day for it.