Friday, November 16, 2007

High Dividend Yield Stocks

Another list of stocks to add to my swing trading watchlist.

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Earlier today, Chairman Mao listed 2 dozen high yielding financial stocks. Here is a chart of the first 10 (because the free version of stockcharts can display only 10):

None of them look particularly attractive from a technical analysis point of view. However, if you put a gun to my head, here are the ones that I would consider:

GLAD: If there is buying volume coming in on a break above 19.75, then buy, with a stop=19.45. This is the best play out of the above group of sorry look stocks.
FHN: If it bounces up from 22, then buy the first pullback that retraces less than 50% of that bounce, with a stop placed @21.75
NCC: Look for buying volume to come in on a break above 22, stop=21.
CT: The safer play is to buy the break above 34. But since the stop is going to be initially placed $28.6, it may be less risk to wait for price to drop below 30 before buying. Granted, buying on a drop below 30 may not necessarily be a high probability play.
CSE: buy a break above 16.5, stop=15.5
BPOP: buy @mkt if the intraday low is greater than 9.62, stop=9.45

Note that 8 out of the 10 closed below its opening price, so it should come as no surprise that they tend to move as a group. Note also that the above buying criteria is a assuming that the market does not move further down from here. Any significant intraday downtrend in SPY and XLF would invalidate all of the above buy scenarios.

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