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Swing Trade Screens Yield More Sells than Buys Again

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This Friday’s screens had 11 buys and 33 sells. That compares with 15 buys and 40 sells the Friday before.

1238 stocks met the initial screening criteria in the current screen. 3.5% of them rendered signals on Friday. The rest were already moving in the direction of the most recent signal. Despite the preponderance of sell signals, there’s no evidence of broad downside thrust. It is just a narrow pullback/consolidation.

Picks are summarized in the table below (subscriber version only). I will bail out on one of them, XXXX, to possibly revisit at a later date. That will leave 8 on the list. Including the bailee, the list showed an average gain of 4.5% on an average holding period of 20 calendar days.

I’m again foregoing stops. This tactic has paid off recently. It doesn’t guarantee that it always will but my backtesting in the past has shown that stops don’t work. They don’t protect against gap losses, and they take out positions that subsequently recover. More often than not, it pays to wait for the rebound to minimize losses on trades that go the wrong way. The conventional wisdom about stops, like much Wall Street conventional wisdom, is wrong.

In my opinion, the way to control risk isn’t to use stops. It is to spread risk among several positions.
That way, if one takes a hit, there are enough other selections that there’s room for the ones that are going to run the right way, to do so. That should offset losses on the ones that don’t go as expected. And the ones that go the wrong way can still be maximized by using TA to the best advantage for the subsequent exit.

Of course, no trading method is perfect. There will always be losses and drawdowns. For now, these are the tactics and strategy that I’ve decided to run with. This is for informational and entertainment purposes, not individual investment advice. You must do what’s right for you.

After reviewing the charts, I saw nothing compelling. There are no new picks. I’ll sit tight with what we already have which is 5 longs and 3 shorts. The table and charts of open picks are below.

Table (subscriber version only)

Charts (subscriber version only)

Technical Trader subscribers click here to download the complete report.

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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