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Swing Trade Screens Yield A Boatload of Short Sales

Last week’s daily screens were surprisingly neutral for the week as a whole. The final score for the week was 114 Buys to 118 Sells. However, many of those buys were inverse funds, so that there was still a modest tilt to the sell side. And on Friday alone, there were just 12 buys and 44 sells, a negative sign for this week.

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The screen results come 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.

I start the weekly process by screening for daily buys and sells from the previous Friday through Thursday. I then rescreened that output, for additional signals in the progression on Thursday and Friday. The final lists this week resulted in 32 chart pick candidates on the buy side and 131 on the sell side. However, of the 32 on the sell side, 15 were inverse funds. That means that nearly 90% of the charts that made the final cut were on the short sale side.

I reviewed the charts from the final output visually. From that review, I chose no buys and 13 shorts to add to the list, shown on the table below. While I don’t track this number, the 13 picks on the short sale side were certainly a record.

Last week we started with 13 picks on the list. 5 were buys, 8 were short sales. Four picks hit their trailing stops and were closed as of the stop price. I closed another as of the opening New York price last Monday. Including those and the picks still open at the end of the week gave us average gains of 2.4% with an average holding period of 10 days.

April was a challenging month. Picks closed out in April had an average gain of 0.9% with an average holding period of 10 calendar days. Yep, it was choppy. March was the first full month where I used multiple days of screening. Picks closed in March had an average gain of 4% with an average holding period of 23 days.

The percentage gain is based on 100% cash positions, with no margin and no use of leverage or options.

This week we will start with 21 picks on the list including the 13 new ones. All 21 picks are short sales. That’s a first. If there’s a V-shaped reversal, it’s gonna leave a mark.

I’ve added new stops to the picks from last week, and adjusted stops on the remainder. This week’s new picks will be added without stops as usual. I like to give them breathing room at the beginning, and manage risk by having multiple picks.

The new picks, along with picks that remain open, and those closed out last week, are shown on the table in the report. Charts of new and open picks are below that.

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