Author: Lee Adler

There were 87 charts with multiple buy signals as of the last two trading days of the past two weeks. There were 55 with a second sell signal. But get this. Of those 55 sells, 30 were fixed income ETFs. Do you think that’s a sign? Non-subscribers click here for access.

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I do not. These income ETFs have been tightly rangebound in a flat range for months, with constant whipsaws. So it’s difficult to conclude that this is the big one. Non-subscribers click here for access.

Overall, I want to caution again that with the market racing back and forth in a range, it has been months since the system has produced a string of winners. Therefore, I would not rely on these numbers as a market signal. Non-subscribers click here for access.

Rangebound markets produce a preponderance of whipsaw signals, which is why I refer to them as meatgrinders. Eventually the market will break out and trend for a while. Until then, the string of small gains and losses is likely to continue. It’s a slow bleed that wears out both long and short traders. But it’s necessary to keep playing the game in order to catch the next big move when it comes. Non-subscribers click here for access.

Upon reviewing the charts with signals, I was surprised to find several buy setups that looked decent. I didn’t like any of the shorts. I added 7 buys to the list, to be tracked starting with today’s opening price. Non-subscribers click here for access.

My sentimental long pick in the last report was the second best performer. Non-subscribers click here for access.

With the 7 new buys, the list will have 11 longs and 4 shorts. The new picks are shown on the table below. I have adjusted or added stops on several of the existing picks. I’ve left the rest stopless to give them time to “ripen.” Non-subscribers click here for access.

Technical Trader subscribers click here to download the complete report.

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For the 5 day period ended April 25, there were 73 charts with multiple buy signals as of the last two trading days of the period. There were 33 with a second sell signal. A little surprising considering the bloodbath on Tuesday. However, many of the buy signals were generated on Monday. Tuesday’s action negated many of those. Non-subscribers click here for access.

Technical Trader subscribers click here to download the complete report.

I would just caution that it has been months since the system has produced a string of winners, so I would not rely on these numbers as a market signal. Non-subscribers click here for access.

Rangebound markets produce a preponderance of whipsaw signals, which is why I call them  meatgrinders. Eventually the market will break out and trend for a while. Until then, the string of small losses is likely to continue. It’s a slow bleed that wears out both long and short traders. But it’s necessary to keep playing the game in order to catch the next big move when it comes. Non-subscribers click here for access.

Given the excitement of the selloff yesterday, I looked at the sell side output first. There were 4 charts early in the alphabetical order that I liked enough to put on the list starting with the opening print today. Non-subscribers click here for access.

On the buy side, while some would like more beans, Mr. Taggart thinks we’ve had enough. But there’s one stock that I’m adding for sentimental reasons. It’s CHD. Early in my career on Wall Street, in 1980, this stock was selling for the equivalent of around 20 cents a share, adjusted for splits. Over the next 45 years it gained 46,000%. In other words if you had bought $1000 worth of stock in 1980, today you’d have $4.6 million. For a company that makes baking soda, for gosh sakes. Respeck! Non-subscribers click here for access.

It’s a slow mover, but hey, maybe on the heels of this short term buy signal, this could be a core holding. What could be more defensive than baking soda? Let’s see what happens over the next 3-4 weeks. Throw in a little CLX and it could be explosive. LOL Non-subscribers click here for access.

Other than that, I’ll stay put there, with added or adjusted stops on several picks as shown on the table (subscriber version). Non-subscribers click here for access.

Technical Trader subscribers click here to download the complete report.

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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. This is a developmental and experimental exercise, for the purpose of providing experienced chart traders with ideas and concepts to use or not use as they see fit. 

Nothing in this letter is meant as individual investment advice and you should not construe it as such. These picks are illustrative and theoretical. The method behind these picks is experimental, and may change over time.  I may trade my own account, and may buy, sell, sell short or cover short, or have positions in any of the stocks on the list at any time, based on a particular trading style that is unique to me. My entry and close out levels are likely to differ from those published due to the exigencies of my trading style and time constraints. I post these items in good faith for informational and educational purposes, and do not take positions in opposition to those which are published. All chart picks are actively traded stocks, and I assume that no subscriber to these reports, nor the total of all subscribers taking positions, would do so in a size that would influence the market price. 

Performance tracking assumes 100% cash basis, no margin, no options. You should not assume that recent performance as reported can or will be repeated in the future. Trading involves risk of loss. In the case of options, the loss can be 100% of the amount invested. When leverage is used the loss can exceed the account equity under certain conditions.

The opinions expressed here assume that readers are experienced investors or are working with an investment advisor.