12/11 – 7:25 p.m. New York time
The winter holidays bring a time of happy anticipation. Except for traders, of course, for whom the season is simply dreary, as the markets slow and the pace of opportunity slows to nothing.
There are no prospects on my desk for Tuesday. I have three earnings plays using shares that made it to the finals, but each is flawed and so, unless their metrics change, shall go no further.
ARWR lacks a Zacks rank and has a negative earnings surprise predictor (ESP) of astounding proportions. If the ESP were positive and of that magnitude, I might take it on even without a rank. But I see no way for this symbol to improve sufficiently to meet my standards for the ESP.
CIVI has a low average directional index (ADX) in the 8th percentile of its most recent range, as well having no earnings surprise in sight and reversed (bearish) positive and negative directional indices (+DI, -DI)).
The final and most liquid of the batch is PAY, with a slight chance of a positive earnings surprise. However, it suffers from a DI reversal, setting up a bull/bear contradiction that removes it from consideration.
Out of due diligence I shall check all three on Tuesday to see if the metrics have improved sufficiently. I’m not filled with happy anticipation of that prospect, however.
By Tim Bovee, Portland, Oregon, Dec. 11-12, 2017