Weekly SmarTrend Stats
Below are the updated statistics for all trends issued by SmarTrend over the past two weeks.
As you can see, there were a significant number of stocks that moved from a Downtrend into an Uptrend over the past week. This correlates to the near 7% rise in the S&P 500 last week. The % of Uptrends that are currently trading above the alert price (profitable) has jumped to almost 88%. Conversely, the % of Downtrend that are trading in the money has fallen to around 38%. It is important to note that this does not mean only 38% of our Downtrend calls were profitable. There were a large number of profitable Downtrend calls that have shifted to Uptrends and are no longer tabulated in the Downtrend row below.
This is why it is very important to add stocks to your watchlist, wait for the trend alerts, and then trade the trend. You can then be sure that you are trading only when the momentum is in your favor. As markets ebb and flow, so do the number of Uptrends vs. Downtrends, and the relative outperformance of each. When we had the S&P in a Downtrend, our Downtrend alerts outperformed. Now that the S&P is in an Uptrend, the total number of Uptrends has increased as has the % of those that are in the money. There will be bumps along the way as the trade term trend shifts from oversold to overbought, but you can stay one step ahead by reading our Morning Call newsletter where we provide insight as to when broader markets are beginning to turn across multiple time horizons.
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