Using Technicals, Fundamentals, And The News
Yesterday I talked about using
a blend of technicals and fundamentals when making trade selections.
In today’s trade, Open Solutions
(
OPEN |
Quote |
Chart |
News |
PowerRating)
held a private offering of 4.4 million shares at 21.50. With session lows of
22.02, some investors and traders might consider today’s news an opportunity
that doesn’t affect them–but, if you look beyond the headlines, using a blend
of technicals and fundamentals, you might find that there is still a tradable
edge that exists.
OPEN was brought to my attention because the
issue happens to be on my Intermediate-Term
Report, and I always try to track the performance of those stocks for
possible entries. The fact that I selected the issue for the report means that
OPEN has the fundamentals and technicals in place according to the ‘IBD’ or
Investor’s Business Daily gospel.
Now there are no guarantees in the market, except
the opening bell and the 4 PM close. But, the fact that today’s trade held above
the price where some ‘very important’ folks were able to take in shares, coupled
with the fact that OPEN is closer to base supports–gives us, in one analyst’s
most humble opinion–an ‘OPEN book’, and a much stronger position from which to
trade the stock, given the overall market environment.
Chris Tyler