The raw daily data for last week ended with a slight edge to the buy side. The final score for the week was 188 to 153 Buys over Sells. That compared with the prior week’s even-Steven Sells 215, Buys 216. This is from a universe of approximately1200-1500 stocks daily that meet the criteria of trading above $6.00, and with average volume greater than a million shares per day. The final numbers show the number of stocks with at least one buy signal or sell signal during the week.
The shrinking number of total stocks having signals, and the narrow spread between buys and sells, are symptomatic of a rangebound market with no thrust, and no sign of breaking into an up or down trend.
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However, on Friday, March 4 alone, there were just 17 buys and 65 sells. It suggests that the market may be beginning to tilt toward the bears. A down move on Monday would solidify that.
I screened just the lists of previous daily buys and sells for final signals on Thursday and Friday, looking for a progression of signals through the week. The final lists resulted in only 8 buy signals and 8 sell signals. Another reflection of a market going nowhere.
I examined each of these 16 charts for ones to add to the chart pick list for this week. None of the buys looked interesting. Several of the sells did, mostly financials, but they were trading near major support levels. That’s usually not a propitious entry point to go short. Even if they break down, there is usually a recoil move that’s a better short sale entry.
Last week gave us gains on average on the 15 picks, all shorts, that were open to start. This was despite closing out 7 picks with losses. They were all shorts. Four of them, I had decided to close as of Monday’s open. The rest hit the stops I had suggested. That left 8 picks still open, again, all shorts.
Including both the closed picks and those still open, the list had an average gain of 3.3% on an average holding period of 10 calendar days.
There are no new picks, so we will start this week with just those 8 shorts still on the list. They all have gains. I adjusted the trailing stops that are intended to close out picks as they are hit.
The picks that remain open, and those closed out last week are shown on the table below (subscriber version only). Charts of open picks are below that.
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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.
