• Trading 101: Names to Keep an Eye On

    by  • February 15, 2013 7:51 am • Trading 101 with Peter Bryans • 1 Comment

    For this Friday morning post, I’d like to present a list of tickers that are currently on my watch list. These select few names are highly shorted, are up year-to-date (YTD), are greater than $10, and have an average daily volume (ADV) >1,000,000 shares. Lastly, and this is the most important criteria from the filter I ran, they are anywhere from 0-10% off their 52-week highs.

    The thinking behind this filter was that these names would show continued strength in this bull market, and eventually make new 52-week highs. Granted it has been a slow and steady climb, day after day, but there are a handful of names making new highs and so I like these stocks as candidates to follow suit. The high short interest is also an extra catalyst as eventually the short sellers will have to buy back to cover their positions, thus helping to drive the shares higher. I also tend to only look at optionable equities with ADV greater than a million per day for liquidity purposes.

    Take a look and hopefully you can find some trading opportunities! Enjoy the day off from the market on Monday.

    Homebuilder DR. Horton. Up 20% YTD. SI/Float is over 11%. Look for continued strength in homebuilders. 

     (chart courtesy of StockCharts.com)

    Technology company Salesforce.com. SI/Float over 11%.

    (chart courtesy of StockCharts.com)

    Data storage devices Seagate Technology. Up nearly 15% YTD, SI/Float over 13%.

    (chart courtesy of StockCharts.com)

    Property & casual insurer Hartford Financial Service Group. Up 9% YTD, and SI/Float is nearly 11%.

    (chart courtesy of StockCharts.com)

    About

    Peter Bryans joined the Schaeffer's Investment Research trading team as a Trader in April, 2012. A graduate of the Fisher College of Business at The Ohio State University -- where he concentrated in Finance -- Peter previously held internships with an insurance broker and a wealth-management firm. In his current role, Peter trades a variety of our real-time option services and also hosts our "Options Apprentice" weekly webinar presentations.

    http://www.schaeffersresearch.com

    One Response to Trading 101: Names to Keep an Eye On

    1. February 19, 2013 9:09 am at 9:09 am

      Thanks for these hints. Am already invested in DHI and CRM…. will study the others

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