The final list of double screened output for last week resulted in a near tie. There were 28 charts with multiple buy signals, and 27 with more than one sell signal.
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. I start the weekly process by screening for daily buys and sells from the previous Friday through Thursday. I then rescreen that output, for additional signals in the progression on Thursday and Friday.
I reviewed the charts from the final output visually. The charts were as equivocal as the numbers suggested. There were no screaming buys or sells, but I took flyers on XXXX and XXXX on the Buy side. I chose no shorts. Technical Trader subscribers click here to download the complete report.
Last week we started with 23 picks on the list. There were 6 longs and 17 shorts. I set one to be covered on Monday’s open. 13 others hit their stops during the week and were closed out. Including those and the picks still open at the end of the week gave us average gains of 3.6% with an average holding period of 13 days.
Closed picks closed out in May have so far averaged a gain of 1.4% on an average holding period of 13 calendar days.
April was a challenging month. The final tally of closed picks in April had an average loss of 0.4% with an average holding period of 11 calendar days. My system does not do well when the average low to low cycle duration drops below 4 weeks. Normally that doesn’t happen too often, but we must roll with the punches when it does.
March was better. 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 start with 11 picks including the 2 new ones. 8 of the 11 picks are longs. Only 3 remain short. If the market crashes this week, I’m sorry, but we’ll miss it and hopefully the 8 longs being mostly energy and one precious metal, won’t be among the casualties.
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 below. Charts of new and open picks are below that.