Trailing stops took out most of the chart picks, which were all on the short side. I’ll consider the rest to be covered at the opening price today. The rally took back about half the profit from the previous week. At Monday’s close the average gain was 4% and the average holding period was 9 calendar days. That’s assuming all cash, no margin, no options, no leverage of any kind.
The raw daily data for last week as a whole ripped to the buy side, obviously. For the week ended January 31 there were 209 charts with at least one buy signal and 93 with at least one sell signal. This was the universe that I then screened with Monday’s prices to find strong candidates to add to the list.
On Monday, the unfiltered data gave us 95 buys and 14 sells. Of those, there were only 9 buys and one sell that were in the universe of charts that had rendered signals the week before. On visual review, I did not feel that any of them were worthy of going on the list this week.
As a result, after closing out the remaining shorts we’ll have an almost empty list, with just one remaining short with tight stops.
It will be interesting to see if the market leaves us in the dust, having missed the turn at the low.
Wait till next week!
The table of open and closed picks along with charts of open picks are in the report (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.