Shares: RPM, WBA

I have entered earnings plays on RPM and WBA using long shares.

For both the average directional index (ADX) is below 25, the transition from non-trending to trending, but the positive earnings surprise indexes (ESP) from Zacks is large enough to make the trades attractive.

I exited the next day. RPM beat its earnings estimates by a dime and the price rose. WBA failed by reach the estimates by two cents, and the price fell. Both at high ESP scores — RPM the highest — and WBA had the more bullish trend scores, with a higher ADX and a wider spread between the two directional index (+DI, -DI). The analysis failed in the case of WBA.

sym entry exit result ($) result (%) entry date exit date
RPM 53.42 54.91 1.49 2.8% 1/3 1/4
zacks rank zacks esp DI spread ADX earns est. earns actual
3 5.44 7.34 16.70 0.60 0.70
sym entry exit result ($) result (%) entry date exit date
WBA 75.44 70.92 -4.52 -6.0% 1/3 1/4
zacks rank zacks esp DI spread ADX earns est. earns actual
2 3.97 18.54 23.54 1.30 1.28

By Tim Bovee, Portland, Oregon, Jan. 3, 2018

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

License
Creative Commons License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.

 

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