TreadingScreen (CW30)
For more information on the TreadingScreen, please READ THIS for an explanation.
CW30 Results
The TreadingScreen results below improve upon the changes made in CW27 and eliminate ‘over-extended’ setups (more on this below).
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CW29 Performance
The performance of last week’s tickers are summarized below. That’s three straight weeks of poor performance since that changes in CW27 were implemented.
Reflection on TreadingScreen Criteria
After some thoughtful consideration, I realized that one of the changes in CW27 was made for really bad reasons:
I saw good setups elsewhere and wanted them included in the screen results
In general, I wanted a greater number of tickers/setups to choose from
The particular change in CW27 included tickers whose current price is far-above key levels. For example, LLY 0.00%↑ (below) was a part of CW29 results but would not have been included in week’s prior to CW27 due to its price being well-above the key-levels (e.g., - EMA). The concern with these ‘over-extended’ setups is a correction in the near-term and likely contributed to the recent dip in performance during CW27-CW29.
An ‘over-extended’ ticker from CW29 that would not have been included on weeks prior to CW27.
The screen criteria going forward is still different than the original but eliminates these over-extended setups. Out of curiosity, I re-generated the CW29 results & provided its performance below.
Using the modified criteria (i.e., - no ‘over-extended’ setups) in CW29 produced only 4 tickers.
The performance of the modified CW29 TreadingScreen was almost identical to SPY. The worst performer (HUM) experienced a retest of a recent max level break-out (expected).
Treading Select Changes
Sold VST at break-even mainly due to upcoming earnings and it approaching $24 resistance level. In hindsight, this was wrong as it is currently at $25.85/sh. Oh well.
Been eyeing MRK for a few weeks and, after earnings, it finally reached my buy limit price. In order to improve my worst case scenario, I also entered a stop limit order in positive territory and that also triggered for a 2.83% gain. Still on-watch.
That leaves LYB as the only holding in the account (+ cash). LYB’s earnings were very positive in my view and I will continue to hold expecting positive price action in the coming weeks.
Watchlist Changes:
$ADC*, $DOX*, $PGR*, $CI*, $IBM, $MRK, $HUM
Investigating further:
$BAH
$TMUS
$K*
$KO
* = earnings
Disclosure: The article expresses the author's own opinions. The information presented is for informational purposes only and should not be construed as financial advice or recommendation to buy or sell any stock. The author is not a financial advisor and encourages all readers to do further research and due diligence before investing.