Last week we had 8 picks on the list, all shorts. 4 of them hit their trailing stops, and were closed out from the list as of that print. Including those and the picks still open at the end of the week gave us average gains of 10% on an average holding period of 19 calendar days. The percentage gain is based on 100% cash positions, with no margin and no use of leverage or options.
This is the best list performance since I began this experiment in 2017. The prior week saw an average gain of 3.3% on 15 picks with average holding period of 10 calendar days.
Previous “best” performances have been a sign to close out, but I will follow the discipline here of merely adjusting trailing stops on the 4 remaining picks. This week I am adding 3 new picks to the list (subscriber version only).
The raw daily data for last week ended with a slight edge to the buy side. The final score for the week was 187 to 146 Buys over Sells. That compared with the prior week’s 188-153 in favor of buys.
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 slight edge to the buy side over the past two weeks has not yet been enough to turn the market. It will take much more of a tilt than this to get anything going on the upside. These signals suggest that a choppy rangebound trend remains in force.
On Friday, March 11 alone, there were just 23 buys and 17 sells. Those are low numbers supporting the choppy trading range thesis.
I screened the lists of previous daily buys and sells for the first part of the week, looking for additional signals in the progression on Thursday and Friday. The final lists resulted in 20 chart pick candidates on the buy side and 7 on the sell side. I reviewed those visually. Despite the plurality of buys, the trend structures were weak. There were few setups that looked like good entry points. On the other side, most of the sell candidates were extended near support.
After reviewing all 27 charts, I chose 3 to add to the list, two shorts, and one buy. This was the first buy since one lonely buy on December 6. Other than that, all picks have been on the short side since then. That will leave the list with 6 open shorts and one buy.
The new picks, along with picks that remain open, and those closed out last week, are shown on the table below (subscriber version only). Charts of new and open picks are below that.
The picks that remain open, and those closed out last week are shown on the table below Charts of open picks are below that.
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.