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My proprietary cycle screens returned 1094 charts that met ideal major trend buy setup criteria last week. That’s out of 1542 that met minimum price and volume criteria. This doesn’t necessarily imply that a big bull move is coming. It merely means that most stocks had fallen to test major support and rebounded to finish above those support levels. That’s typically a short term bullish setup. This is the second straight such weekly reading. I would judge it to be a single episode spread over two weeks.
2/8/25 After a long bull run, the first pullback to support almost never results in a major reversal, but it could be the start of a topping process that could ultimately result in a subsequent breakdown.
Drilling down, there were 268 stocks that met intermediate buy side criteria and 165 that hit short term buy triggers over the course of the week.
248 charts met ideal major sell criteria on the week, which is an increase from 108 the week before. That means that they rose to long term resistance and were rebuffed. 158 had intermediate term sell setups. 57 hit short term sell triggers.
The weekly numbers were bullish on balance, with buys having a lopsided edge over sells. But there were still apparent opportunities on the short side.
Looking at just Friday’s data among the major and intermediate buy setups, there were 74 short term buys triggered versus 23 sells. 21 of the buys were fixed income securities ETFs. That’s consistent with the conclusion in Liquidity Trader reports
On visual review I liked 3 of the buys and 5 of the shorts as shown on the table in the subscriber report.
Seven existing picks hit trailing stop prices during the week. 6 of them had gains. The average gain was 19.3% with an average holding period of 22 calendar days. Including open picks still on the list as of Friday’s close the list showed an average gain of 11.7% on an average holding period of 18 calendar days versus 7.9% with an average holding period of 13 calendar days the previous week.
I have designated 4 shorts to be covered as of Tuesday’s (first trading day of holiday week) opening prices. Net of those, this week the list starts with 15 open and new picks of which 5 are longs and 10 are shorts.
I am adding or adjusting stops most remaining picks as shown on the table on the next page (subscriber report).