I added 7 longs to the list for Tuesday. I expect these to be very short term, but worth a play. After closed trades there will 7 longs and 11 shorts on the list, so we are still predominantly short. That could change in the next day or two if the rally shows signs of sticking around, which would include a possible pullback that holds above the lows.
I liked the charts of the 7 long picks because they all showed high probability buy patterns. They had come down to either my 18 month cycle moving average (thick purple line) or 10-12 month cycle moving average (thick light blue line) in the selloff. Then they rallied enough to break either the 6-7 week cycle line (thin red line) or the 13 week cycle line (thin blue line).
In the weekly market update we covered the fact that lows were expected in those cycles in this 2 week window. The bottoming process may not be complete, but it appears to have at least begun. These picks looked promising enough that I took the plunge.
I continue to adjust trailing stops on the shorts as appropriate based on changes in the charts.
Here is today’s updated list including new buys, sells, short sales, cover shorts, and updated stops, as well as performance metrics for this month.
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