Bears Finally Win One in the Screen Game 4/8/23

This is a syndicated repost courtesy of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Reposted with permission.

The bears finally won one in the screen game. The final score in yesterday’s game was Bears 23, Bulls 8.

The totals are too small to suggest an intermediate top. Remember that just 10 days or so ago we had a day with 155 buy signals and only 8 sells. That kind of widespread inertia carries a lot of residual momentum that normally lasts a few months.  So I’m viewing today’s numbers as a little counter trend blip for now.

Here is today’s  output.

This is raw data. These are not recommendations. They represent charts that have triggered short term signals near key cyclical support or resistance levels. Pick through these and see if there are any that you like from your own charts. Feel free to post your charts here with comments.

Symbol Buy Sell 500 200 125 50
ABR 1 0 0 0 0 1
BHC 1 0 0 0 0 1
CFX 1 0 0 0 0 1
OII 1 0 0 0 0 1
PAA.O 1 0 0 0 0 1
UCO 1 0 0 0 0 1
BNO 1 0 0 0 0 1
USO 1 0 0 0 0 1
AU 0 1 1 0 1 0
BLL 0 1 0 1 0 0
BDX 0 1 0 0 0 1
CSIQ.O 0 1 0 0 1 1
CRON.O 0 1 0 0 1 0
TNA 0 1 0 0 0 1
DG 0 1 0 1 0 0
KODK.K 0 1 0 1 0 0
GEO 0 1 0 0 0 1
HR 0 1 1 0 0 0
HGEN.O 0 1 0 0 0 1
IMGN.O 0 1 0 0 0 1
LQD 0 1 1 0 0 0
EWZ 0 1 0 0 0 1
EWH 0 1 0 0 0 1
JD.O 0 1 0 1 0 0
LTHM.K 0 1 0 0 1 0
PSX 0 1 0 0 0 1
PBI 0 1 0 0 0 1
SIEN.O 0 1 0 0 0 1
TTWO.O 0 1 0 0 0 1
VCYT.O 0 1 0 0 0 1
WPM 0 1 0 0 1 0
Totals 8 23

It is normal for new signals to diminish as a trend progresses, simply because so many stocks have already triggered. The remaining universe of stocks that have not recently triggered buy signals is shrinking. It also means that the risk reward ratio is becoming gradually less favorable. Obviously the risk/reward is most favorable in the initial day or two of the upturn.

These signals ideally have a time horizon of 1-4 weeks.

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The last 4 columns are for the time frame of the support or resistance line around which the signals were triggered.

Ignore the .O and .K These are peculiar to Reuters data.

I initially screen 9000 NYSE and NADSACS issues for stocks that have been trading more than 1 million shares per day and are trading above $6. There are normally between 30 and 100 results, depending on where we are in the cycle. There are more signals at cyclical turning points and fewer as a move progresses. Monday looked like a significant turning point. Fool me once, shame on you, Mr. Market. 

I use these screens to pick stocks for my ready list for my personal trading, and also for my weekly swing trade chart picks for Technical Trader subscribers.

I developed the algorithm to hunt for stocks that looked primed to have a good move, ideally over a period of 4 weeks. In practice they range from 1 week to 7 weeks. I consider the move finished when they break trend support, using the indicators from which the screen program is constructed. 

From the screen output I visually review the charts. I make my picks from that review.

There are usually between 2 and 8 good looking setups every day. The numbers are bigger around intermediate term turning points. 

This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.comView original post.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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