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Avoid the Meat Grinder, Pick Only Wieners

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This Friday’s screens had 56 buys and 7 sells. That compares with the previous Friday’s 16 buy signals and 28 sell signals. This breaks a string of four straight weeks with a majority of sell signals in Friday screens.

1376 stocks met the initial screening criteria. 4.6% of them rendered signals on Friday. The rest were already moving in the direction of the most recent signal. Likewise, rangebound markets tend to generate a lot of whipsaw signals that are just noise. It’s important to look for and try to avoid that when choosing potential swing trades.

With that in mind, I chose 4 charts to add to the list. They are xxx, xxx, xxx, and xxx (subscriber version only). I’ll track those as of Monday’s opening prices.

Last week reversed a string of 4 straight losing weeks, with an average gain of 2% on an average holding period of 18 calendar days.

Rangebound markets generate lots of whipsaw signals, which are rough on a system designed to ferret out 3-4 week swings. I’ve called them meat grinder markets. I put out a lot of hamburger in September. I’m working on avoiding that while keeping toes in the water to catch the next wave.

Overall performance is summarized in the table below (subscriber version only) .

The strategy and tactics opinions expressed in this report illustrate one particular approach to trading. No representation is made that it is the best approach, or even suitable for any particular investor.

These picks are illustrative and theoretical. Nothing in this report is meant as individual investment advice and you should not construe it as such. Trade at your own risk. 

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