Category: 2 – Technical Trader

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Liquidity Trader proprietary cycle screens returned 1087 charts that met ideal major trend buy setup criteria last week. That’s out of 1555 that met minimum price and volume criteria. The initial screen is weekly so the weighting of the 4 days prior to what happened Friday probably gives a misleading impression. That’s one of the reason I make my final trade picks only from the daily screens on the closing prices on the day before the report.

Drilling down, there were 206 stocks that met intermediate buy side criteria (down from 268 the prior week) and 194 that hit short term buy triggers over the course of the week. 

Hard to believe that only 64 charts met ideal major sell criteria on the week. That means that they rose to long term resistance and were rebuffed. Most stocks had met that criteria in preceding weeks, which is why the number is so low. 52 had ideal intermediate term sell setups. 79 hit short term sell triggers. 

Looking at just Friday’s data among the major and intermediate buy setups, there were 71 ideal major trend buy setups out of the 1555 stocks that met minimum institutional price and volume criteria.  There were 111 ideal intermediate buy setups. Of those two groups, just 42 triggered short term buy signals. These are the charts that I visually reviewed for final selection.

On the sell side there were 13 ideal major trend sell setups. Again, the low number is due to many stocks forming these setups in prior days and weeks. There were 59 ideal intermediate term sell setups. Of those two groups, 59 stocks triggered short term sell signals, which included all of the intermediate setups. These were the charts that I visually reviewed for final selection. 

On visual review I liked 2 of the buys and 9 of the shorts as shown on the table in the subscriber report. 

One existing pick hit its stop price during the week. I had selected 4 picks to be covered at last week’s open. Including last week’s closed picks and open picks still on the list as of Friday’s close, the list showed an average gain of 3.0% on an average holding period of 12 calendar days versus 11.7% with an average holding period of 18 calendar days the previous week. Closed picks in February to date have had an average gain of 5.1% with an average holding period of 17 calendar days.

New picks have started off with a recoil, but that’s not unusual. I’m pulling the plug on several but I want to give others a couple of weeks before pulling the weeds. Given the market volatility, I’ve added protective stops to several. The risk with a market that closed like Friday’s is that the stops will be gapped, and then filled, so you can use mental stops if you are of that mind. Either way, there’s risk, as you know.

 I have designated 5 buys to be closed as of Monday’s opening prices. Net of those, this week the list starts with 19 open and new picks of which 2 are longs and 17 are shorts.

I am letting the new picks and 2 existing picks ride without stops. I am adding or adjusting stops on remaining picks as shown on the table below. Subscribers can see the complete table of picks and results in the subscriber report. 

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🔗 Subscribers, download the full report here to access this week’s detailed analysis and chart picks.

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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).

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Our proprietary cycle screens returned 1031 charts that met ideal major trend buy setup criteria last week. That’s out of 1480 that met minimum price and volume criteria. It is an enormous number but it 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. 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 only 108 stocks that met intermediate buy side criteria and just 70 hit short term buy triggers over the course of the week.

There were 108 that met ideal major sell criteria on the week. That means that they rose to long term resistance and were rebuffed. 165 had intermediate term sell setups, which is significantly more than intermediate buys. 131 hit short term sell triggers, nearly double the short term buy triggers.  

Looking at just Friday’s data, there were 30 short term buy signals and 52 on the sell side.  

Among the major and intermediate buy setups, 21 short term buys triggered versus 4 sells on Friday. So it is a mixed bag overall, not a picture that suggests easy pickings.

On visual review I liked just one of the buys and none of the shorts as shown on the table in the subscriber report.

Two existing picks hit stop prices during the week and one short had been noted to be covered as of the opening price last week. I have designated 1 sell and 1 short cover as of Monday’s opening prices. I am adding stops to the remaining picks. Last week the list showed an average gain of 7.9% on an average holding period of 13 calendar days versus 5.4% with an average holding period of 11 calendar days the previous week. This week the list starts with 18 open picks of which 6 are longs and 12 are shorts. Last week there were 17 open picks to start, of which 9 were longs and 8 were shorts.

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Our proprietary cycle screens revealed 273 charts that met ideal major trend buy setup criteria last week. 111charts met ideal major sell criteria. This is from a universe of approximately 1500 listed stocks that met minimum price and volume criteria. This test has a two-week lookback period. Therefore, it has a built-in lag for identifying major and intermediate turning points.

287 charts met ideal intermediate term buy side criteria last week. 149 met intermediate term sell side criteria.  

Among the major and intermediate buy setups, 6 short term buys triggered versus 21 sells on Friday. On the week, a total of 69 short term buy signals triggered and 99 short term sell signals.

On visual review I liked none of the buys and 6 of the shorts as shown on the table below (Subscriber report).

Two picks hit stop prices during the week and one short will be closed as of the opening price on Monday. I have added stops to a couple of the remaining picks and am letting others ride for now.

Last week the list showed an average gain of 5.4% on an average holding period of 11 calendar days versus 4.1% with an average holding period of 11 calendar days the previous week. This week the list starts with 17 open picks of which 9 are longs and 8 are shorts. Last week there were 18 open picks to start, of which 10 were longs and 8 were shorts.

January performance was mixed. Including only trades closed out during the month there was an average loss of 2.4% and an average holding period of 14 calendar days. Including both closed picks and those picks still open as of January 31, there was an average gain of 3.7% and an average holding period of 10 calendar days.

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Our proprietary cycle screens revealed 160 charts that met ideal major trend buy setup criteria last week versus 162 the prior week. There were 145 that met ideal major sell criteria versus 128 the previous week. This is from a universe of 1440 listed stocks that met minimum price and volume criteria.This test has a two-week lookback period. Therefore, it has a built-in lag for identifying major and intermediate turning points.   

123 charts met ideal intermediate term buy side criteria last week versus 126 the previous week. 113 met intermediate term sell side criteria versus 105 the prior week.  

Among the major and intermediate buy setups, 9 short term buys triggered versus 12 the previous week. 42 sells triggered versus 11 the previous week.    

On visual review I liked 3 of the buys and 6 of the shorts as shown on the table below. Other than when a limit price is indicated, all picks will be added to the list based on the average of opening and closing prices on Monday.

Last week the list showed an average gain of 4.1% with an average holding period of 11 calendar days. Three picks hit stop prices during the week and I posted that one would be covered at last week’s open. The results are included on the chart. I have added stops to the a couple of the remaining picks and am letting others ride for now.