The S&P now has 42 stocks with an upward bias. Overall today was a pretty subdued day. While GR was on our watch-list we did not enter. After looking at potential locations for our stop, a good risk/reward could not be established.
We are still holding our position in GAS. The stock is currently up: 1.2% since our entry.
First Level Stock Analysis:
Second Level Stock Analysis:
NEM Analysis: Newmont Mining Corporation, does not announce earnings until end of April. This stock scored the highest on our first level analysis today with a positive expectancy of +3.5% within 5 days and +8% within 20 days. A tight stop can be placed at about 1.5% below today’s closing price. This produces a very favorable risk/reward scenario.
APOL Analysis: This is the second time APOL has shown up on our radar. This time it does not have a pending earnings announcement to skew the model.
FTR Analysis: Frontier Communications Company, does not have a favorable risk/reward ratio. The most logical stop location would be nearly 5% below today’s closing price. With an expectancy of around 1%, this trade does not make much sense.
HES Analysis: Hess Corporation- no scheduled corporate events. The 5 day expectancy of .5% is a bit low, but the 20 day expectancy of 4% is attractive. A stop can be placed 2% below today’s closing price. The low 5 day expectancy may be a sign that this signal is a few days early.
BTU Analysis: Peabody Energy Corporation – no scheduled corporate events. With nearly +3% expectancy over the next 5 days this stock is attractive. The main concern here is the stop would be exceptionally tight at less than .5%. We may need to move the stop to the next support level creating a less attractive risk/reward ratio.
GR: Goodrich Corporation has now shown up two days in a row. This stock is projected to have a good expectancy over the next few days, however, the risk/reward is still not very attractive.
RRC: Range Resources Corporation has the second highest expectancy over 5 and 20 days. The stop for this one is a bit tricky. A tight stop at around 1% may be sufficient, but my gut tells me the 5% stop may be more realistic. This makes the risk/reward ratio a little less clear.
APA: Apache Corporation looks fairly solid with a great 20 day expectancy. The lower 5 day expectancy may point to the signal being slightly premature. A 1% stop is attainable.
Stock Analysis Summary
Tomorrow will be a busy day. We will be watching several of these stocks very closely. NEM, BTU, RRC, APOL, and APA are the most likely candidates. I try not to enter more than 1 or 2 stocks on any given day, but may need to make an exception tomorrow.