Originally posted at Capitalstool.com. Join the discussion.
Bears won yesterday’s screen game with 37 sell signals and 9 buy signals. That compares with Friday’s 70 buys to 10 sells. The 5 day totals are 145 buys and 113 sells. The net positive of +32 is less than Friday’s +72. It’s not enough to signal a big downturn. I therefore regard the selling from yesterday and overnight with suspicion.
We had a couple days of 45 to 56 sell signals over the past two weeks. But that was well below the the thrust of the 155 buy signals that started the 6 month cycle up phase back on March 28. That was the Big Kahuna. That wave has waned, but there’s no big counter wave yet. If today’s selling is sustained, then it’s possible that this is it. But another rebound would keep the up thingy going.
This is the problem with rangebound markets. Swing frequency increases, duration decreases. Amplitude can go either way. At the moment, it has increased, and that appears to be a trend. Day traders using intraday minute based charts can cope, and even do very well, with shorter duration, i.e. greater frequency, and increasing amplitude. But for those with a long term horizon, say, two weeks, it’s very tough.
Yeah, two weeks is long term.
On Friday I wrote, “I wouldn’t be surprised to see some of these sell signals turn into buy signals today or Monday. Or vice versa.” It’s the day trader’s Lord’s Prayer. Give us this day our daily reversal.
I screen all stocks and ETFs from the NYSE and NASD, excluding those with less than an average of 1 million shares per day traded, and selling for less than $6 per share. The table below shows swing trade buy signals and sell signals from yesterday’s action. The numbered columns represent the time frame of the support or resistance trend around which the signals were generated.
Every weekend I use the previous week’s screens to select charts that have potential for a move, and I post them for subscribers.
Here is today’s output. The number 1 indicates that the condition is true. 0 is false. The numbers on the right half of the chart represent the time frames in days of the support or resistance areas where the signal was triggered.
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 using your own charts. Feel free to post your charts here with comments.
Here are a few that look interesting. Again, these are NOT RECOMMENDATIONS.
Click the chart to enlarge