Hot Stock's Trend Recap: Whiting Petroleum Corporation (NYSE: WLL) – Alpha Beta Stock

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U.S. stocks are falling Friday as health care companies skid. Technology companies also slipped as investors continued to sell on news that Senate Republicans want to delay a cut in U.S. corporate taxes by one year. Media companies and retailers gained ground. Stocks have risen for eight weeks in a row, their longest run in almost four years, but that streak is on track to end.

KEEPING SCORE: The Standard & Poor’s 500 index lost 7 points, or 0.3 percent, to 2,577 as of 10:10 a.m. Eastern time. The Dow Jones industrial average slid 54 points, or 0.2 percent, to 23,407. The Nasdaq composite gave up 13 points, or 0.2 percent, to 6,736. The Russell 2000 index of smaller-company stocks added 1 point, or 0.1 percent, to 1,476.

The S&P 500 is down about 0.4 percent this week. It’s been setting records all year and climbed 5 percent over a winning streak that covered the previous eight weeks.

TAKEN ILL: Health care companies have been falling since late October. On Friday, prescription drug distributor Cardinal Health $1.39, or 2.3 percent, to $59.17 and health care products maker Johnson & Johnson lost $1.67, or 1.2 percent, to $138.68. Medical device maker Medtronic slid $1.48, or 1.8 percent, to $79.33. (Source: Chicago Tribune)

Stock in Focus: Whiting Petroleum Corporation (NYSE: WLL)

Whiting Petroleum Corporation (NYSE: WLL) has grabbed attention from the analysts when it experienced a change of -4.27% in the current trading session to trade at $26.71. A total of 2,800,063 shares exchanged hands during the intra-day trade contrast with its average trading volume of 5.02M shares, while its relative volume stands at 2.92. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Whiting Petroleum Corporation (NYSE: WLL) stock is found to be 7.16% volatile for the week, while 6.63% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $10.12B and the number of outstanding shares has been calculated 362.79M. Based on a recent bid, its distance from 20 days simple moving average is 15.53%, and its distance from 50 days simple moving average is 25.40% while it has a distance of -5.35% from the 200 days simple moving average. The company’s distance from 52-week high price is -50.15% and the current price is 68.20% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 63.68 together with Average True Range (ATR 14) of 1.53.

Stock’s Valuation:

Past 5 years growth of WLL observed at -26.80%, and for the next five years the analysts that follow this company is expecting its growth at 25.30%. The stock’s price to sales ratio for trailing twelve months is 7.50 and price to book ratio for the most recent quarter is 2.15, whereas price to cash per share for the most recent quarter are 903.75. Its quick ratio for the most recent quarter is 0.60. Analysts mean recommendation for the stock is 2.70. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

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