Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Don’t Be Misled By Today’s Tie in the Screen Game

Today’s Screen Game was a virtual tie. There were 30 buy signals and 31 sell signals. But one of the sell signals was an inverse ETF, so it counts as a buy. On the other hand it was a gold miners ETF. Since that sector is often countercyclical to the broad market, it’s kind of a bearish signal for the market. Upon video instant replay review, I’m going to split that and call it a tie. Therefore the final score is 30.5 to 30.5.

The bears are making a showing. They had won yesterday’s screen by 23 to 8. They didn’t win today, but they had more signals. Chances are, the market will stay dull and rangebound for the next few days.  There definitely aren’t enough sell signals here to suggest a downside reversal, but the 155 buy signals from March 28 seem to have mostly spent their initial momentum.

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
ALB 1 0 0 0 1 0
ALXN.O 1 0 0 0 0 1
AZN.O 1 0 0 0 0 1
BLNK.O 1 0 0 0 0 1
BWA 1 0 0 0 0 1
COOP.O 1 0 0 0 0 1
EWH 1 0 0 0 0 1
FCEL.O 1 0 0 0 1 0
FEYE.O 1 0 0 0 0 1
FOXA.O 1 0 0 0 0 1
FUBO.K 1 0 0 1 0 0
GLD 1 0 0 0 0 1
GLDM.K 1 0 0 0 0 1
IAU 1 0 0 0 0 1
IWM 1 0 0 0 0 1
LAC 1 0 0 0 1 0
M 1 0 0 0 0 1
NTES.O 1 0 0 0 1 0
ORBC.O 1 0 0 0 0 1
PACB.O 1 0 0 0 0 1
PLL.O 1 0 0 0 0 1
PVG 1 0 0 0 1 0
RLGY.K 1 0 0 0 0 1
SGOL.K 1 0 0 0 0 1
SSRM.O 1 0 0 0 0 1
TCOM.O 1 0 0 0 0 1
UMC 1 0 0 0 0 1
VIAC.O 1 0 0 0 1 0
VTEB.K 1 0 0 1 0 0
ZTS 1 0 0 0 0 1
ANGL.O 0 1 0 0 0 1
BKR 0 1 0 0 1 0
CGC.O 0 1 0 0 1 0
CLR 0 1 0 0 0 1
COG 0 1 0 0 0 1
COP 0 1 0 0 0 1
DUST.K 0 1 0 0 1 0
ENDP.O 0 1 0 0 1 0
ERX 0 1 0 0 0 1
ETRN.K 0 1 0 1 0 0
EVRG.K 0 1 1 0 0 0
EW 0 1 0 0 1 0
FENY.K 0 1 0 0 0 1
FTI 0 1 0 0 1 0
GNTX.O 0 1 0 0 0 1
HFC 0 1 0 0 0 1
IRWD.O 0 1 1 1 0 0
IYE 0 1 0 0 0 1
KMI 0 1 1 0 0 0
LYB 0 1 0 0 0 1
MPC 0 1 0 0 0 1
PBF 0 1 0 0 0 1
SAIL.K 0 1 0 0 1 0
SRE 0 1 1 0 0 0
SUNW.O 0 1 0 0 0 1
VDE 0 1 0 0 0 1
VZ 0 1 0 1 0 0
WBT 0 1 0 0 0 1
XLE 0 1 0 0 0 1
XOM 0 1 0 0 0 1
XOP 0 1 0 0 0 1
Totals 30 31 4 5 13 40

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.

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.  

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. 

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.