This approach is a cycles-based guide to short-term trading.
In February, the five long recommendations fell by an average of 7.54% while the one recommended short sale declined by 10.26.%. The DJIA fell by 10.07%.
In March, the DJIA fell by 13.74% versus -7.67% for the bullish five selections and -7.42% for the four bearish choices. Given the current panic conditions, short sales are likely to be more profitable.
For the month of April, the two-cycle concept is applied. First, the Dow Jones 30 stocks are ranked from the best performer to the worst by calculating the percent of months in which the stock rose in that month. The top 15 were screened as follows. If the weekly cycle pointed up, the stock is considered a buy. In order to qualify, the weekly cycle had to rise for at least 21 days in the month. The traditionally weakest stocks in the month were screened in order to determine if the weekly cycles fell in the month; the same 21-day rule applied.
The seasonal screen for the month is presented below. The number of years of data is in the last column. The % Times Return column shows the percent of months in which the stock rose. The Return column shows the average percentage gain in the month. The Expected Return column is the product of columns two and three. We can see that VISA has been trading for 12 years and has risen in 75% of all the months of April. The average return has been 4.74% and the expected return is 3.55%.
Of the top 15, these stocks show rising weekly dynamic cycles for at least 21 days in the month and are considered buys for April:
Regarding the weakest 15, these stocks show declining weekly cycles and are suitable short sales:
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