That gigunda reverse head and shoulders pattern on the ES 24 hour fucutures hourly bars is now complete. I previously warned that it measures to 4100. I fully expect that to be reached.
…
By 3 PM.  😄😄😄
In fact, the pattern is even bigger, with another neckline at 3935. Once they cross that, the measuring objective would be 4150.
As usual, I ran my daily technical screens of more than 8700 listed stocks on the NYSE and NASD this morning, looking for those that are greater than $6/share, have averaged over a million shares per day for the past month, and have triggered short term cycle buy or sell signals at or near key support or resistance levels.
Normally I get between 30 and 70 results, which I then review visually to pick those that look good to trade that day for my listening and dining pleasure. I’m also looking for those that I’ll add to the weekend list that I then publish for subscribers to the Technical Trader report over at Liquidity Trader.
We’re having a good week with that after weeks of barely treading water as the market swung violently too and fro every couple days. My system is geared toward finding swing trades with an ideal period of 2-4 weeks. Very short swings are problematic. The goal during those times is to tread water until the tide finally comes in or goes out. Then we can swim with that tide for as long as it takes us.
I think that we’re starting one of those tide riding times. Tuesday and Wednesday the screens generated over 100 signals each day, and 95% of them were on the buy side.
95 fucking percent. That’s unbelievable. So I think we’re staring a wave. Fortunately, there were enough signals last week that I had a list of 13 chart picks, all longs. It’s doing well. Just one of them dropped a bit, and triggered a stop. The rest are up.
That’s all I’ll say about that. Whenever I gloat in print, I know it’s the end. Quantum mechanics and whatnot. Besides, the last few weeks have been sheer hell, so this hardly makes up for that drudgery of working my ass off for nothing. So, I don’t talk much about my trading. I’m just not good enough a trader to talk about it without jinxing myself. Instead, now, when I start feeling like Pharrell Williams (mygawd the spell check corrected me) instead of bragging, I start closing out trades.
As far as in the published list, once I’ve posted a chart pick I usually start with a just-in-case stop, and then if the tide starts flowing our way, I post a clear formula for trailing stops based on short term cycle lines, which are similar to moving averages, but aren’t. I let those close out my picks very mechanically. As trends proceed, and picks remain open, I adjust the trailing stop calcs once a week.
So that’s the system. Today, after that deluge of buy signals over the past few days, we’re back into a more normal range with just 34 signals. But again, 97% buys. Wow. Only one sell signal. Now I’ll review those charts, and pick a few to add to my watch list for my trading account. However, I’m coming in with 9 longs already from yesterday. I would imagine that I’ll peel some of them off if this strength holds for the NY open.
But just for you, here’s the raw list. These are not recommendations. I just want to show you what my daily screen output looks like. The next step is to look at the charts and see which look like low risk/high potential reward setups. If you’re reading this here on the Stool, I trust that you know how to do that.
| Instrument Name | Symbol | Buy | Sell | 500 | 200 | 125 | 50 |
| AbbVie Ord Shs | ABBV.K | 1 | 0 | 0 | 0 | 0 | 1 |
| Accenture Ord Shs Class A | ACN | 1 | 0 | 0 | 0 | 0 | 1 |
| Digital Turbine Ord Shs | APPS.O | 1 | 0 | 0 | 0 | 0 | 1 |
| Electronic Arts Ord Shs | EA.O | 1 | 0 | 0 | 0 | 1 | 0 |
| Enphase Energy Ord Shs | ENPH.O | 1 | 0 | 0 | 0 | 1 | 0 |
| Edwards Lifesciences Ord Shs | EW | 1 | 0 | 0 | 1 | 0 | 0 |
| Fidelity National Financial Ord Shs | FNF | 1 | 0 | 0 | 0 | 0 | 1 |
| Golar LNG Ord Shs | GLNG.O | 1 | 0 | 1 | 0 | 0 | 1 |
| Xtrackers USD High Yld Corporate Bd ETF | HYLB.K | 1 | 0 | 0 | 0 | 1 | 0 |
| Infrastructure and Energy Alternatives Ord Shs | IEA.O | 1 | 0 | 0 | 0 | 1 | 0 |
| iShares Latin America 40 ETF | ILF | 1 | 0 | 1 | 0 | 1 | 0 |
| Invitation Homes Ord Shs | INVH.K | 1 | 0 | 0 | 1 | 0 | 0 |
| Koss Ord Shs | KOSS.O | 1 | 0 | 0 | 0 | 0 | 1 |
| Kratos Defense and Security Solutions Ord Shs | KTOS.O | 1 | 0 | 0 | 0 | 1 | 0 |
| iShares iBoxx $ Inv Grade Corporate Bond ETF | LQD | 1 | 0 | 1 | 0 | 0 | 0 |
| Medical Properties Trust REIT Ord Shs | MPW | 1 | 0 | 0 | 0 | 0 | 1 |
| MGIC Investment Ord Shs | MTG | 1 | 0 | 0 | 0 | 0 | 1 |
| Northrop Grumman Ord Shs | NOC | 1 | 0 | 0 | 0 | 1 | 0 |
| Realty Income REIT Ord Shs | O | 1 | 0 | 0 | 0 | 1 | 1 |
| Option Care Health Ord Shs | OPCH.O | 1 | 0 | 0 | 0 | 0 | 1 |
| Ontrak Ord Shs | OTRK.O | 1 | 0 | 1 | 0 | 0 | 0 |
| CarParts com Ord Shs | PRTS.O | 0 | 1 | 0 | 0 | 0 | 1 |
| Global X NASDAQ 100 Covered Call ETF | QYLD.O | 1 | 0 | 1 | 0 | 0 | 0 |
| SFL Ord Shs | SFL | 1 | 0 | 0 | 1 | 0 | 0 |
| ETFMG Prime Junior Silver Miners ETF | SILJ.K | 1 | 0 | 0 | 1 | 0 | 0 |
| SPDR S&P 500 ETF Trust | SPY | 1 | 0 | 0 | 0 | 0 | 1 |
| Smith Wesson Brands Ord Shs | SWBI.O | 1 | 0 | 0 | 1 | 1 | 1 |
| TPI Composites Ord Shs | TPIC.O | 1 | 0 | 0 | 0 | 1 | 0 |
| Vista Outdoor Ord Shs | VSTO.K | 1 | 0 | 0 | 0 | 0 | 1 |
| Vanguard Total World Stock Index Fund;ETF | VT | 1 | 0 | 0 | 0 | 0 | 1 |
| Wendys Ord Shs | WEN.O | 1 | 0 | 0 | 0 | 0 | 1 |
| Westport Fuel Systems Ord Shs | WPRT.O | 1 | 0 | 0 | 0 | 0 | 1 |
| Xilinx Ord Shs | XLNX.O | 1 | 0 | 0 | 1 | 0 | 0 |
| Real Estate Select Sector SPDR Fund | XLRE.K | 1 | 0 | 0 | 0 | 0 | 1 |
So that’s it. That’s how it’s done. I’m always looking for tweaks to improve it, but this is the essential system. Swingers like you can branch off with options or margin or whatever exotic strategies you like. Me. I like to just buy and sell, and mostly short, individual stocks. I’m much more comfortable shorting, but it’s just not something I do much any more.
Nah gah dah. Wouldn’t be prudent.
Now that I’ve written this, maybe I should just sell everything right now, before it’s too late.
What if this pattern fails?
I see a wedge. Do you see a wedge? Oh MY GAWD.
This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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