Each week we scan about 7300 stocks and ETFs, checking fundamentals, performing technical analysis and looking for fresh BUY and SELL signals. Out of this process we generate the following lists:
- Alert HQ stock alerts - based on a combination of proprietary and standard technical analysis techniques, we identify stocks or ETFs that are undergoing reversals, either to the upside or to the downside
- Trend Leaders - just like it says, a collection of stocks in strong up-trends
- Cash Flow Kings whose free cash flow yield is 25% or greater
- Bollinger Band Breakouts - stocks or ETFs that have moved at least 3% above their upper Bollinger Band or at least 3% below their lower Bollinger Band
- Swing Trading Signals - stocks that have bounced off a higher or lower Bollinger Band
- Trend Busters - stocks or ETFs that have violated a current trend.
- Gap Signals - stocks or ETFs gapping up or down during the last 5 sessions
Though Friday's market action was ugly, stocks actually finished the week with gains.
Trading was driven by earnings reports this week and that was both a blessing and a curse. A few stocks solidly beat expectations (Google, for example), some beat but topline growth was anemic (IBM and GE), some beat but still failed to satisfy (Goldman Sachs) and some missed completely (Bank of America).
In the meantime, the dollar continued its descent and the Dow fell back below 10,000. We had a huge sell-off in municipal bond funds as mentioned in Thursday's Alert HQ post and then a big bounce in munis on Friday. The result of all this is that signals this week are inconclusive and confusing. Take the munis. We've got plenty of them on the daily Alert HQ list of SELL signals and we've a good subset on the Swing Signals list as BUYs. Go figure...
On many of our signal lists we see SELLs outnumbering BUYs. The Trend Leaders list seems stuck now in the mid-700's. If you held a gun to my head, I'd say the market is poised for a modest sell-off. On the other hand, stocks are still close to 2009 highs, many upward-sloping trend lines remain intact and 75% of stocks remain above their 50-day moving averages.
So it's anybody's guess where we go from here. Pop a few of our signal stocks on your watch lists and give them a little time to resolve their ultimate direction. For traders, this might be a good week to concentrate on individual stocks rather than sectors.
This week's results --
Here is the detailed breakdown for Alert HQ for this weekend:
- Based on daily data, we have 8 Alert HQ BUY signals and 86 SELL signals
- Based on weekly data, we have 2 Alert HQ BUY signals and 10 SELL signals
- Based on daily data, we have 738 Trend Leaders. 64 new stocks joined the list since Thursday and 52 fell off the list since Thursday.
- We have 88 Bollinger Band Breakouts based on daily data and 324 Breakouts based on weekly data.
- We have 786 Cash Flow Kings
- Based on daily data we have 55 Swing Signals of which 48 are BUY signals and 7 are SELL signals.
- We have Trend Busters with 30 signals based on daily data (16 BUY signals and 14 SELL signals) and 39 based on weekly data (4 BUY signals and 35 SELL signals).
- Finally, we have 187 Gap Signals based on daily data of which 77 are SELL signals and 110 are BUY signals. Added this week are 54 Gap Signals based on weekly data including 17 SELL signals and 37 BUY signals.
Visit Alert HQ to view or download your free lists of stock alerts. The alerts based on weekly data show those stocks that have exhibited some good follow-through after a recent trend reversal. If you want to be early in identifying the newest trend reversals, the lists based on daily data are for you. No matter which preference you have, there are bound to be a few stocks you will want to add to your watch list.
If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you have no faith in technical analysis, the Cash Flow Kings may be just what you are looking for. If you do favor technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals may provide some good trading ideas. See them all at Alert HQ.
Remember, we also provide our latest updated Swing Signals, Trend Leaders, Gaps and Trend Busters on Tuesday and Thursday nights.