Market bias continued upward, after some encouraging mid-week economic reports and despite Friday’s offsetting poor employment report. Institutions took the sum of these reports as an indication of modest economic growth without danger of rapid inflation, a positive situation. Stock prices are already thought to have priced in another minor interest rate hike by the Fed this later this month.
Again our stock remain mixed – many on their way up in price while others keep (or start) falling. Always a trader’s market, requiring stock-specific analysis – as any investor all-long or all-short in all stocks in our list would be our neutral at best. Increased number of new weekly highs/lows and highlights this week, both a good thing.
Analytics: Recent upgrades implemented in Version 53 are already proving productive in reducing “false positive” signals which formerly caused some over-trading and unproductive trades. Back-testing just a small sampling of charts reveals these new analytics would have produced about 22% fewer trades over the past 12 months – many of the unproductive type – so a good sign going forward.
The only downside of fewer trades is that it will take new subscribers longer to allocate their entire capital to new positions. Although it has been our recommendation to wait to enter stocks only when a new trade is signaled, we may need to re-assess that guideline and suggest entering stocks already into their current trend cycle in order for subscribers to get their capital working quicker. More to come on that.
Highlights: 6 new weekly highs in long positions. 6 stocks with double-digit long gains:
TRUE +18% EVH +36% FRPT +44% LPSN +50% FIVN +64%
5 new weekly lows among short positions. 5 stocks with double-digit short gains:
FTK +19% PIR +22% NGL +37%