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The markets are playing Tariff Whack a Mole while the cycle model runs in the background, drowned out by all the market noise. The markets are thin, and the tariff news pops up randomly and repeatedly to move prices a long way in an instant.
Despite the unpredictability of this pattern, the cycle screens have managed to keep us above water, but underperforming a buy and hold your nose strategy over the course of this rally. One day, the cycle model will prevail, but the market will first need to work its way through the changes of tariff policy, court appeals, and ultimately whether the US government chooses to acquiesce to the court decisions or not.
It’s not a game that the charts will help us with, but given an assortment of picks and the clock ticking toward resolution, we should at least hold on to what we’ve got and hopefully eke out gains along the way.
During the week ended Monday, May 28, out of 1625 stocks meeting institutional price and volume criteria:
Setups:
239 met major or intermediate trend buy setup criteria .
160 met major or intermediate trend sell setup criteria.
But short-term triggers tilted the other way. The question this morning is whether this rally presents a classic opportunity of sell the news.
Tactics
For actionable trades, I focus on the most recent day’s signals from pre-screens for meeting intermediate and long-term buy and sell setups. From those setups, Wednesday’s action produced 10 short-term buy signals but 50 sell signals despite the preponderance of longer term buy setups. The big number of sell signals looks very wrong this morning on the heels of a lower court striking down the Trump tariffs. But we’ll see. I’ll go with what the charts show and we pays our money and takes our chances.
That starts with visual review of the 60 charts produced by the screening process.
Trade Selections and Adjustments
- 5 new picks, including 1 buy and 3 shorts
- Closing 2 longs on Thursday’s open
- Leaving 5 longs and 9 shorts including new picks
- Adding 4 stops
Table of picks and charts in subscriber report.
Non subscribers here for access.
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