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The screening algorithms produced another week of solid, but widely diverging performance last week. The methodology continues turning up a good number of winners, but still too many losers, and I am working on methods to reduce the less clear setups on the list.
During the week ended Friday, November 7, out of 1899 stocks meeting institutional price and volume criteria, the screens produced the following results :
Setups:
First, recapping the cumulative lists of longer-term setups, there were:
205 resting big gainers up from 198 last week, and
249 sleeping dogs, up from 224.
I also look for breakout and breakdown stocks from the last 6 months. The buy side outnumbered the sells, 129 to 103.
Then I run weekly screens based on cycle positions.
391 met major or intermediate trend buy setup criteria (versus 370 the previous week.)
137 met major or intermediate trend sell setup criteria, (versus 248 the previous week.)
Tactics
For actionable trades, I visually review charts that triggered short term signals from the prescreened structural candidates. New picks are shown on the table below and their charts follow.
I also review the existing issues on the list for whether to close, hold, or add or adjust stops. Here are the results of my final review for this week.
Trade Selections and Adjustments
- 13 new picks. All buys, no shorts
- 6 existing picks hit stops or were previously designated to be covered or sold last week (See table)
- 7 prior picks will be considered covered or sold at Monday’s open. 6 will remain open of which 2 are shorts and 4 are buys
- 2 picks with trailing stops (must be adjusted daily per stated step). Four will ride without stops
Performance Recap
Currently open picks have an average gain of 5.9% on an average holding period of 17 calendar days. Picks closed so far in November have an average gain of 10.1% with an average holding period of 22 calendar days. This compares with a gain of 1.4% in the S&P 500 over 24 calendar days through November 7. Past performance does not indicate future results.