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Bulls Working On The Screen Game, Bears Going Down Down Down

Originally posted at Capitalstool. 

Bulls won today’s Screen Game by a raw score of 49 to 22. That’s swing trade buy signals vs. sell signals from yesterday’s action. Two of the sell signals were inverse ETFs, so we can add those to  the buy side for an adjusted score of 51 to 20.

Buy signals are increasing as the market rises. There were just 11 buy signals on April 13. They’ve gone up every day. The market is gaining momentum breadth as it rises. This could go parabolic over the next couple of days. I’ve had higher targets in my Technical Trader weekly analysis for a few weeks. The market’s daily internal dynamics are confirming.

I asked previously, “Why didn’t the market pull back when the bears had more signals on their side?” That happened last week.  Answer- residual momentum.  There weren’t enough sell signals to offset the 155 buy signals on March 28 and 75 on April 2. These numbers showed the thrust off the intermediate bottom.

The number of sell signals, while more than buys over the April 8-13 period, was still low at no more than 31 each day. There was no downside thrust. Nothing to get the ball rolling for bears. Bulls played defense spectacularly. On Tuesday, this week, they had the ball again.

Now the bullish numbers are increasing again in signs of renewed momentum. The market has cleared all resistance and is trading in rare air. Resistance won’t stop this trend. Only momentum loss will. For now, momentum is gaining.

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.

If you are interested in manipulating this data for your own purposes, the table format can be pasted into a spreadsheet, charting program, or your brokerage quote list to run your charts. You can strip out just the symbols in a spreadsheet, and then transfer the symbols to your chart platform.

Symbol Buy Sell 500 200 125 50
AM 1 0 0 0 0 1
AMX 1 0 0 0 1 0
AR 1 0 0 0 0 1
AZN.O 1 0 1 0 0 0
BAX 1 0 1 0 0 0
BBL 1 0 0 0 0 1
BIIB.O 1 0 0 1 0 0
BND.O 1 0 0 0 0 1
BUD 1 0 0 0 1 0
CLX 1 0 0 0 0 1
CNC 1 0 0 0 1 0
CNX 1 0 0 0 0 1
CREE.O 1 0 0 0 0 1
CTMX.O 1 0 0 1 0 0
CXW 1 0 0 1 0 0
EIX 1 0 0 0 1 0
ES 1 0 0 1 0 0
GLD 1 0 0 0 0 1
GLDM.K 1 0 0 0 0 1
GSK 1 0 0 1 1 0
IAU 1 0 0 0 0 1
IBN 1 0 0 0 1 0
IRWD.O 1 0 0 0 0 1
IUSB.O 1 0 0 0 0 1
KGC 1 0 0 0 1 0
LBRDK.O 1 0 0 1 0 0
NEM 1 0 0 1 0 0
PFSI.K 1 0 0 1 0 0
PHYS.K 1 0 0 0 0 1
PVG 1 0 0 0 1 0
RIO 1 0 0 0 0 1
SAND.K 1 0 1 0 0 0
SCHP.K 1 0 0 1 0 0
SGOL.K 1 0 0 0 0 1
SLG 1 0 0 0 0 1
SPAB.K 1 0 0 0 0 1
SPIB.K 1 0 0 0 0 1
SPLB.K 1 0 1 0 0 0
SPTL.K 1 0 0 0 0 1
STZ 1 0 0 0 0 1
SWI 1 0 1 0 0 0
TEL 1 0 0 0 0 1
TGTX.O 1 0 0 0 0 1
TIP 1 0 0 0 0 1
TLT.O 1 0 0 0 0 1
TMO 1 0 0 0 1 0
TRP 1 0 1 0 0 0
UL 1 0 1 0 0 0
XEL.O 1 0 0 1 0 0
CHX.O 0 1 0 0 0 1
CNK 0 1 1 0 0 0
CRSP.O 0 1 0 0 0 1
DDD 0 1 0 0 1 0
DUST.K 0 1 0 1 0 0
EAF 0 1 0 0 0 1
F 0 1 0 0 0 1
GLNG.O 0 1 0 0 1 0
GRWG.O 0 1 0 0 0 1
HPP 0 1 1 0 0 0
LVS 0 1 0 0 0 1
MGY 0 1 0 0 0 1
MRO 0 1 0 0 0 1
NOV 0 1 0 0 1 0
PBR 0 1 0 0 0 1
PBRa 0 1 0 0 0 1
RCL 0 1 0 0 0 1
SYF 0 1 0 0 0 1
TBF 0 1 0 0 0 1
TBT 0 1 0 0 0 1
WYNN.O 0 1 0 0 0 1
XRX 0 1 0 0 0 1
Totals 49 22 9 11 12 40

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

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.  

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. 

Here’s a typical chart. I review these daily for my own personal trading candidates, and weekly for inclusion in the Technical Trader newsletter. 

This chart is not a recommendation. It’s actually a random choice. Just happened to be on my screen as I wrote this post.

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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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