blurb ——- The selling that started on Thursday carried over in to Friday and all four indices fell once again. The losses on Friday caused all four indices to suffer weekly losses as well. As for Friday’s losses, the Russell took the worst hit with a drop of 1.52%. The Nasdaq fell 0.94% and the Dow lost 0.68%. The S&P took the smallest loss at 0.62%.
scan strategy —— My scans remained bla bla skewed on Friday with 30 bearish signals and only two bullish signals. The barometer did climb a little once the figures were added in to the calculation. Friday’s reading was -47.6, up from -65.5 on Thursday. Not surprisingly, with only two stocks on the bullish list, I didn’t find anything I liked there. That left me with only bearish trade ideas to choose from. The one that stood out to me the most was on Momenta Pharmaceuticals, Inc. (MNTA). The company’s fundamental ratings are below average with an EPS rating of 29 and an SMR rating of a C.
Option pick ——-Buy to open the September 17.50-strike puts on PDCE at $3.70 or better. These options expire on September 18. I suggest a target gain of 75% and that means the stock will need to drop to $11.00. The stock was down to $10 as recently as May, so it won’t have to break that low to hit our target. I recommend a stop at $16.75.
