Liquidity Trader

It wasn’t a good week for the list. All but one pick got stopped out, mostly as intended, but the end result was an average gain of 1.4% with an average holding period of 12 calendar days last week. And that win was all due to one big winner.

That left just one pick open, a buy that did not participate in Friday’s rally, but whose chart still appears to have potential. In spite of that, I’ve added a stop just below the low, just in case.

Technical Trader subscribers click here to download the complete report.

Non-subscribers click here for access.

For picks closed out in December, the average gain was 1.8% with an average holding period of 15 calendar days, that is, half a month. Since January 2022, the average gain has been 1.6% on an average holding period of 17 calendar days. I went off course in October, in particular, and November, and the list got hammered, but December saw a bit of recovery. Non-subscribers click here for access.

I have recently tweaked the screening methodology over the past two weeks for the purpose of improving overall performance, but there are no guarantees. This is an ongoing experiment. You should make your own judgments accordingly. Non-subscribers click here for access.

Meanwhile, for the week ended January 6, even with Friday’s strong tape there were just 5 charts with second or third buy signals as the week ended, and 28 with second or third sells. However, that includes Thursday’s sell signals. Most of those whipsawed on Friday. This data doesn’t have a strong bias either way. Non-subscribers click here for access.

The only charts that I liked were two picks on the short side, which are noted on the table below (subscriber report). All picks closed out last week, along with the one that wasn’t, are also shown on the table below. After adding the new picks, there will be 1 buy and 2 shorts.  Non-subscribers click here for access.

All picks closed out last week, along with the six that weren’t, are shown on the table below. After adding the new pick, there will be 1 buy and 4 shorts. Non-subscribers click here for access.

Technical Trader subscribers click here to download the complete report.

Subscription Plans

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.

The list showed an average gain of 3.5% with an average holding period of 10 calendar days last week. I had tightened stops with the intent of closing out trades. As a result, 16 of the 22 picks did get closed out. Six remain open for this week. I have added or adjusted stops on those, with the intent to close them out of the list if stops are hit.

Technical Trader subscribers click here to download the complete report.

Non-subscribers click here for access.

For picks closed out in December, the average gain was 1.8% with an average holding period of 15 calendar days, that is, half a month. Since January 2022, the average gain has been 1.6% on an average holding period of 17 calendar days. I went off course in October, in particular, and November, and the list got hammered, but December saw a bit of recovery. Non-subscribers click here for access.

I have tweaked the screening methodology over the past two weeks in hopes of avoiding a repeat of October-November, and for the purpose of hopefully improving overall performance, but there are no guarantees. As always, I attempt to recognize and respond to the need for tweaks. This is an ongoing experiment. You should make your own judgments accordingly. Non-subscribers click here for access.

Meanwhile, for the week ended December 30, applying the additional filters, there were just 2 charts with second or third buy signals as the week ended, and 10 with second or third sells. I did not like any of the sells as shorts. They were mostly rangebound noise type signals. Of the two buys, one had an impressive chart, and I added that one to the list (shown below), despite it being a biotech, a sector which I normally avoid. Non-subscribers click here for access.

The new pick will start without a stop, as usual. Non-subscribers click here for access.

All picks closed out last week, along with the six that weren’t, are shown on the table below. After adding the new pick, there will be 1 buy and 4 shorts. Non-subscribers click here for access.

Technical Trader subscribers click here to download the complete report

Subscription Plans

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.

Sticking to the method that I developed for this exercise finally paid off last week. The list returned to solid profitability for the week, after a frustrating quarter. For the week, the list showed an average gain of 3.5% with an average holding period of just 6 calendar days.

Technical Trader subscribers click here to download the complete report.

Non-subscribers click here for access.

But the market is still rangebound. Until that changes and there’s a trend breakout where we can hold winners for more than a millisecond, it will continue to be a dogfight in this theoretical attempt to extract meaningful swing trade profits week in and week out.

Subscription Plans

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.