Average swing trade list theoretical profit rose above 10% last week, on an average holding period of 3 weeks. It would have been even greater had I not added 3 shorts last week. That was at least premature. Non-subscribers click here for access.
Swing trade stock screens produced 127 charts with multiple buy signals as of the last two trading days of the past week. There were just 51 charts with a second sell signal. Signals tilted more to the buy side than in previous weeks, suggesting a modest broadening of the rally. However, whenever the list profit has reached an average of 10% over the past 18 months, the market has subsequently reversed. Non-subscribers click here for access.
In view of that, and given the duration of the rally already, I am reluctant to add more longs now. There were a number of setups that looked pretty good, mostly in the energy sector, along with a few REITs, about which I’m skeptical. But with so many longs already, I’ll ride with those and start adding stops for profit taking purposes. Non-subscribers click here for access.
I looked hard at the sells. Most of them were fixed income and gold ETFs. Among the few common stocks that had sell signals, the setups were not good for shorting. Nor do I like the looks of the 3 shorts already on the list, so I added or adjusted stops to those. Non-subscribers click here for access.