Today, Hap (Robert) Sneddon FCSI and Larry Berman CFA, CMT, CTA commented about whether MCD-N, CPG-T, XEG-T, GIB.A-T, XBZ-T, AA-N, GAS-T, C-N, FTS-T, XGD-T, XLU-N, QBR.B-T, ECI-T, SLG-X, SGY-T, AVO-T, WJA-T, AGF.B-T, WPT-T, XLP-N, WN-T, FAP-T, DML-T, GWG-X, DEE-T, GIB.A-T, BTE-T, YRI-T are stocks to buy or sell.
Analysts seem to be generally positive after the earnings announcement. They have been lagging because of not passing the stress test. This stock has not recovered nearly as well as many of the others. He just took an initial position of ZUB-T. As we correct over the next number of months he will accumulate.
They had the issue with the US healthcare software but this year it has held up well. If we get much below this $32 area it would be bad technically. The insider selling is a huge negative. You never know why an insider is selling, but it is much better if they are buying. The company is not buying back stock, so it suggests it is breaking down.
Education Segment. VIX – Volatility Index. Markets actually do well in periods of low volatility. The VIX is low right now. There has not been a whole lot of movement lately. Low volatility means low options prices. You should not start selling your stocks because the VIX is low. Now there is a product that shorts the VIX (XIV-N and HVI-T). When the VIX is already starting to go up, this is a time to start using these products.
He does not average down into a name. He would prefer to see it break the downtrend.