Weekly reversal levels for over 1000 stocks and ETF. Covering stocks from Dow Composite, Nasdaq 100, S&P 500, S&P 400 mid caps and more than 100 ETF. To be used for market orientation and long term investing.
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Weekly Reversal Levels for February 7, 2015
1. Weekly Reversal Levels for February 7, 2015.
Quick intro:
Further instructions are in the final pages of this PDF, here is the quick start info:
Weekly reversal levels can be used for market orientation and long term investing. The color codes indicate the
current Mode of the market:
* Green: bullish with upward momentum (MoM). Market is above its reversal level and climbing higher. Rallying.
* Pale Green: bullish with downward momentum (MoM). Market is above its reversal level and mean reverting
towards it. Sideways pause or correcting.
* Red: bearish with downward momentum (MoM). Market is below its reversal level and heading lower. Declining
* Pink: bearish with upward momentum (MoM). Market is below its reversal level and mean reverting towards it.
Sideways pause or rebounding.
The tables below give the weekly Mode, the weekly reversal level (RevL) and the weekly MoM. You can see how
many weeks have passed since the last standard Buy or Sell signal and the % change since that signal (blue =
profitable and orange = loss).
The action column gives quick info for trading:
* Buy, Sell, weak Buy (wBuy) or weak Sell (wSell) -> regular buy and sell signal based on the reversal level.
* Speculative Buy (spBuy) -> MoM turning up, can give you a great entry point for stocks you want to buy on
weakness.
* Partial profits (pP) -> a chance to take some money off the table. You can always scale back in when the up trend
resumes (see: "Add").
* Add -> this is where you can add to positions.
* Add short (AddSh) -> good opportunity to add or initiate short positions.
* Watch (w) -> stock to watch, very close to reversal level. The reversal level tends to reject prices, which can be
used for special entry techniques (More on that later).
The MoM indicator shows the current "mood" tendency of the stock based on a proprietary formula. It is used to
detect speculative buy opportunities in stocks that have become very oversold.
The buy and sell signals generated by the reversal levels are a "trend following" method. The signals generated by
MoM indicator are a "mean reversal" method. By combining both we have a hybrid system.
Tip: Yellow boxes in the "MoM" or "Weeks" column help you to spot where the action is. These are stocks with
momentum changes or with new buy or sell signals.
Tip2: To find a certain stock quickly you can use the "Find" function in Acrobat Reader. Just click "Ctrl+F" and it will
bring up a little search box. Typing in the name or ticker of the stock you are looking for will locate it in the list.
More details and strategies for use can be found at the end of this PDF. There is also a little FAQ.
Major indexes
2. Weekly Current Mode RevL (W) MoM (W) Weeks P/L % Action
Nasdaq ^IXIC 4744.40 4558.03 ▼ 1.43 15 6.16%
S&P 500 ^SPX 2055.47 1988.71 ▼ 0.80 15 4.71%
Nikkei ^N225 17648.50 16475.29 ▼ 3.29 14 5.47%
FTSE 100 ^FTSE 6853.40 6529.58 ▲ 1.42 2 0.30%
DAX ^DAX 10846.39 9800.21 ▲ 6.30 11 11.56%
20+ Year Tr. Bond ETF TLT 130.96 123.91 ▼ 9.10 54 22.75% pP
Gold (spot) $XAUUSD 1233.45 1203.61 ▲ 3.31 3 -3.62% w
$EURUSD $EURUSD 1.1313 1.2593 ▼ -9.84 38 -17.36%
Oil (CL) #CL 51.69 71.72 ▲ -9.57 30 -48.55%
Wheat (ZW) #ZW 527.00 577.78 ▼ -1.43 3 -0.99%
Dow Jones Composite stocks
Weekly Current Mode RevL (W) MoM (W) Weeks P/L % Action
American Electric Power Co. AEP 59.15 57.43 ▼ 7.22 23 10.23% pP
AES Corporation AES 12.07 13.80 ▼ -3.53 4 -6.22%
Alaska Air Group ALK 65.92 54.36 ▲ 9.05 15 31.03%
American Express AXP 85.01 90.25 ▼ -3.26 3 -1.68%
Boeing Co. BA 148.00 128.77 ▲ 4.54 6 12.36%
Caterpillar Inc. CAT 83.21 94.49 ▼ -7.33 9 -15.66%
CH Robinson Worldwide CHRW 70.51 68.43 ▼ 1.58 42 23.94% w
CenterPoint Energy CNP 22.22 23.84 ▼ -2.40 9 -5.53%
Con-way Inc. CNW 43.21 47.06 ▼ -3.46 4 -4.51%
Cisco Systems, Inc. CSCO 27.24 25.36 ▼ 4.48 13 8.79%
CSX Corp. CSX 35.44 33.54 ▼ -0.70 0 0.00% wBuy
Chevron Corporation CVX 109.61 116.98 ▲ -4.49 21 -10.38% spBuy
Dominion Resources D 75.71 73.45 ▼ 4.99 23 7.65% w
Delta Air Lines Inc. DAL 45.51 43.37 ▼ 4.13 15 15.57% w
DuPont Co. DD 76.10 69.84 ▼ 3.10 20 6.81%
Walt Disney Co. DIS 102.02 89.34 ▲ 3.96 15 15.32%
Duke Energy DUK 83.11 80.91 ▼ 6.61 43 16.61% pP
Consolidated Edison ED 66.77 63.52 ▼ 8.20 33 17.45% pP
Edison International EIX 64.37 63.02 ▼ 6.42 53 33.02% pP
Exelon Corporation EXC 35.00 34.97 ▼ 1.49 22 3.52% w
Expeditors Intl. of Washington EXPD 45.03 42.48 ▼ 0.95 14 5.48%
FedEx Corporation FDX 173.25 164.74 ▼ 2.14 82 69.99%
FirstEnergy Corp. FE 38.94 37.00 ▼ 6.21 23 13.73% pP
3. General Electric GE 24.52 25.47 ▼ -4.41 8 -1.96%
GATX Corp. GMT 59.49 59.93 ▲ -2.90 9 4.13% w
Goldman Sachs Group GS 183.43 186.70 ▼ -2.16 3 3.30% w
Home Depot, Inc. HD 109.04 95.17 ▲ 6.36 36 35.88%
Intl Business Machines IBM 156.72 168.11 ▲ -5.08 17 -15.51%
Intel Corporation INTC 33.29 34.87 ▼ 1.04 1 0.70%
JB Hunt Transport Services JBHT 82.03 79.05 ▼ 1.35 15 6.19%
JetBlue Airways JBLU 17.00 13.39 ▼ 8.09 14 47.83%
Johnson & Johnson JNJ 101.10 105.20 ▼ -2.52 2 -0.69%
JPMorgan Chase & Co. JPM 57.89 60.21 ▼ -3.03 3 3.30% w
Kirby Corporation KEX 76.69 99.82 ▲ -8.75 17 -25.85% spBuy
Coca Cola Co. KO 41.45 43.08 ▼ -0.68 1 0.58%
Kansas City Southern KSU 116.52 118.20 ▼ -2.73 3 5.93% w
Landstar System Inc. LSTR 67.52 71.38 ▼ -5.61 4 -0.91%
Southwest Airlines Co. LUV 44.14 36.39 ▼ 7.72 141 404.97%
Matson, Inc. MATX 37.69 31.15 ▼ 6.86 14 34.22%
McDonald's Corp. MCD 93.99 95.93 ▲ -2.56 29 -4.60% w
3M Co. MMM 166.07 152.13 ▼ 5.65 15 12.21%
Merck & Co. Inc. MRK 58.79 58.51 ▼ 2.00 4 -6.83% w
Microsoft MSFT 42.41 46.15 ▼ -2.65 1 4.48%
NextEra Energy, Inc. NEE 105.80 102.33 ▼ 5.14 15 7.70% pP
NiSource Inc. NI 43.14 40.46 ▼ 3.95 111 80.27% pP
Nike Inc. NKE 91.79 89.14 ▼ 1.19 37 20.00% w
Norfolk Southern NSC 107.79 109.12 ▲ -2.50 4 5.46% w
PG&E Corp. PCG 56.06 52.01 ▼ 8.93 15 18.90% pP
Public Service Enterprise Grou PEG 40.59 40.01 ▼ 3.84 20 7.75% w
Pfizer Inc. PFE 33.17 30.75 ▼ 3.90 14 10.94%
Procter & Gamble Co. PG 85.61 88.59 ▼ 0.94 1 1.22%
Ryder System, Inc. R 90.33 85.48 ▼ -0.77 0 0.00% wBuy
Southern Company SO 48.17 47.46 ▼ 6.63 51 13.37% pP
AT&T, Inc. T 34.87 33.31 ▲ -2.00 0 0.00% Buy
The Travelers Companies TRV 107.20 99.65 ▼ 4.96 25 15.99%
United Continental Holdings UAL 67.58 58.35 ▼ 7.48 15 36.14%
Unitedhealth Group UNH 107.60 95.69 ▼ 8.23 97 91.19%
Union Pacific UNP 121.81 115.56 ▲ 0.58 0 0.00% Buy
United Parcel Service UPS 100.67 106.79 ▼ -0.56 2 -1.01%
United Technologies UTX 119.81 110.88 ▼ 5.19 9 6.74%
4. Visa, Inc. V 267.42 241.65 ▼ 5.01 14 10.97%
Verizon Communications VZ 49.33 47.10 ▲ -2.93 0 0.00% Buy
Williams Companies WMB 46.38 49.64 ▲ -6.63 9 -6.02%
Wal-Mart Stores Inc. WMT 87.33 81.53 ▼ 5.83 13 11.11%
Exxon Mobil XOM 91.50 96.03 ▲ -2.85 27 -7.33%
Nasdaq 100 stocks
Weekly Current Mode RevL (W) MoM (W) Weeks P/L % Action
Apple Inc. AAPL 118.93 101.61 ▲ 3.33 41 46.88%
Adobe Systems Inc. ADBE 72.54 69.41 ▼ 0.77 14 3.73% w
Analog Devices Inc. ADI 55.01 51.72 ▼ 2.37 13 9.67%
Automatic Data Processing ADP 86.44 77.85 ▼ 5.08 40 27.40%
Autodesk, Inc. ADSK 57.07 58.74 ▼ -0.92 1 5.02% w
Akamai Technologies AKAM 61.13 62.40 ▼ -0.74 3 2.31% w
Altera Corp. ALTR 34.13 36.19 ▼ -1.55 3 -2.35%
Alexion Pharmaceuticals ALXN 175.63 187.68 ▼ -0.72 0 0.00% Sell
Applied Materials AMAT 24.24 22.72 ▼ 1.83 14 9.24%
Amgen Inc. AMGN 151.40 145.25 ▼ 0.83 33 25.46% w
Amazon.com Inc. AMZN 374.28 307.44 ▲ 1.10 1 6.92%
Activision Blizzard ATVI 22.10 20.18 ▲ -0.41 0 0.00% Buy
Avago Technologies AVGO 104.74 92.26 ▼ 6.66 15 28.50%
Bed Bath & Beyond BBBY 78.20 68.84 ▼ 6.05 24 21.33%
Baidu, Inc. BIDU 211.78 226.71 ▼ -1.01 0 0.00% Sell
Biogen Idec Inc. BIIB 402.00 329.06 ▲ 5.30 9 17.72%
Broadcom Corp. BRCM 43.78 39.91 ▼ 1.83 15 10.33%
CA Technologies CA 32.03 29.20 ▼ 3.28 13 6.59%
Celgene Corporation CELG 118.75 103.01 ▼ 6.64 35 46.61%
Cerner Corporation CERN 67.72 61.31 ▲ 4.61 28 19.75%
Check Point Software Techn. CHKP 76.72 74.77 ▼ 3.97 15 5.73% w
CH Robinson Worldwide CHRW 70.51 68.43 ▼ 1.58 42 23.94% w
Charter Communications CHTR 173.43 152.37 ▼ 0.72 0 0.00% wBuy
Comcast Corporation CMCSA 56.92 53.89 ▼ 0.93 0 0.00% wBuy
Costco Wholesale COST 148.70 132.48 ▲ 5.81 36 28.37%
Cisco Systems, Inc. CSCO 27.24 25.36 ▼ 4.48 13 8.79%
Catamaran CTRX 52.28 47.68 ▼ 3.48 14 10.79%
Cognizant Technology Solutions CTSH 57.44 50.40 ▲ 5.32 14 17.27%
Citrix Systems, Inc. CTXS 62.17 65.46 ▲ -4.01 17 -5.08%
5. Discovery Communications DISCA 29.91 35.15 ▼ -5.23 21 -26.00%
Discovery Communications DISCK 28.91 34.62 ▼ -5.74 21 -25.34%
Dish Network Corp. DISH 75.63 67.74 ▼ 2.55 12 17.09%
Dollar Tree, Inc. DLTR 75.07 63.60 ▲ 8.02 35 32.03%
DIRECTV, Inc. DTV 87.93 84.51 ▲ -0.36 6 1.35%
eBay Inc. EBAY 54.50 55.69 ▼ 0.96 1 2.62% w
Equinix, Inc. EQIX 219.43 211.57 ▼ 1.29 13 2.78% w
Express Scripts Inc. ESRX 81.84 79.23 ▼ 4.16 25 11.80% w
Expeditors Intl. of Washington EXPD 45.03 42.48 ▼ 0.95 14 5.48%
Expedia Inc. EXPE 77.87 87.17 ▼ -0.20 0 0.00% Sell
Fastenal Company FAST 42.33 46.70 ▼ -0.02 1 -4.73%
Facebook, Inc. FB 74.47 72.78 ▼ 0.32 80 118.58% w
F5 Networks, Inc. FFIV 111.99 125.09 ▼ -2.12 2 -2.36%
Fiserv, Inc. FISV 76.98 67.71 ▲ 6.55 165 164.99%
Twenty-First Century Fox FOXA 33.58 36.34 ▼ -1.35 4 -5.41%
Gilead Sciences Inc. GILD 97.48 96.47 ▲ -0.49 2 -7.22% w
Keurig Green Mountain GMCR 118.90 138.75 ▼ -3.15 5 -9.38%
Google Inc. GOOG 531.00 545.38 ▲ -1.93 17 -2.57% w
Google Inc. GOOGL 533.88 552.02 ▲ -2.40 17 -3.83% w
Garmin Ltd. GRMN 53.42 55.03 ▲ -1.69 8 1.79% w
Henry Schein, Inc. HSIC 139.83 131.39 ▼ 7.13 14 16.46%
Illumina Inc. ILMN 192.64 179.70 ▼ 1.96 15 1.48% pP
Intel Corporation INTC 33.29 34.87 ▼ 1.04 1 0.70%
Intuit Inc. INTU 87.83 89.91 ▼ -0.37 3 0.90% w
Intuitive Surgical ISRG 512.27 487.20 ▼ 1.89 32 21.56% w
KLA-Tencor KLAC 62.61 71.72 ▼ -5.16 10 -9.35%
Kraft Foods Group KRFT 66.77 61.03 ▲ 8.28 13 15.32%
Liberty Global Inc. LBTYA 49.06 46.08 ▼ 0.69 15 9.19%
Linear Technology LLTC 46.38 44.13 ▼ 2.03 10 0.83%
Liberty Capital Group LMCA 36.62 34.30 ▲ -1.05 0 0.00% Buy
Liberty Media C LMCK 36.57 34.19 ▲ -0.30 0 0.00% Buy
Liberty Ventures LVNTA 36.94 35.42 ▼ 1.60 12 2.73% w
Marriott International MAR 74.22 68.86 ▼ 3.30 73 72.53%
Mattel Inc. MAT 28.22 31.76 ▼ -5.53 54 -33.74%
Mondelez International MDLZ 35.91 37.12 ▼ -0.63 1 1.90% w
Monster Beverage MNST 117.15 101.56 ▼ 7.69 26 69.17% pP
Microsoft MSFT 42.41 46.15 ▼ -2.65 1 4.48%
34. Ultimate Software Group ULTI 158.47 141.85 ▲ 0.56 14 5.43%
United Natural Foods UNFI 79.63 72.66 ▼ 5.40 14 16.66%
Unit Corp. UNT 31.31 44.16 ▲ -8.29 21 -49.65%
United Rentals, Inc. URI 89.72 105.02 ▼ -6.43 8 -11.01%
United Therapeutics UTHR 141.91 125.14 ▲ 3.77 23 22.61%
UTi Worldwide Inc. UTIW 12.21 10.97 ▼ 1.28 13 9.41%
Valspar Corp. VAL 86.26 81.80 ▼ 2.60 15 8.03%
Valley National Bancorp VLY 9.66 9.70 ▲ -2.34 8 2.88% w
Valmont Industries VMI 124.24 135.65 ▲ -6.12 30 -16.69% spBuy
Vishay Intertechnology VSH 13.63 14.19 ▼ -1.13 19 -4.62% w
Vectren Corporation VVC 46.39 44.61 ▼ 6.79 25 16.73% pP
Westinghouse Air Brake Technol WAB 86.80 82.63 ▼ -0.12 14 0.46%
Westamerica Bancorp. WABC 43.68 47.32 ▼ -4.24 8 -6.63%
Washington Federal WAFD 21.14 21.72 ▼ -2.01 4 0.67% w
Webster Financial WBS 33.22 30.25 ▲ 0.08 0 0.00% Buy
WellCare Health Plans WCG 75.38 70.89 ▼ 3.55 14 10.85%
Waste Connections WCN 44.46 46.17 ▲ -5.59 10 -5.79%
Waddell & Reed Financial WDR 47.52 49.43 ▲ -2.85 39 -26.98% spBuy
Wendy's Company WEN 11.03 8.91 ▲ 9.42 15 32.41%
Werner Enterprises WERN 29.12 28.00 ▼ 3.40 15 13.44% w
Winland Electronics WEX 98.09 105.13 ▲ -5.10 9 -6.67%
WGL Holdings Inc. WGL 54.45 50.46 ▼ 9.19 25 29.27%
Western Refining WNR 40.03 40.23 ▲ -3.57 12 -2.03% w
VCA Antech Inc. WOOF 53.00 44.08 ▼ 8.25 37 64.55% pP
Worthington Industries WOR 31.16 33.86 ▲ -7.33 27 -20.99%
WPX Energy, Inc. WPX 13.14 15.76 ▲ -6.24 17 -30.03%
Westar Energy, Inc. WR 41.12 38.84 ▼ 8.08 16 15.83% pP
W.R. Berkley WRB 49.51 48.06 ▼ -0.79 41 14.85%
Weingarten Realty Investors WRI 36.60 34.48 ▲ 5.13 16 10.57%
Williams-Sonoma Inc. WSM 80.19 70.85 ▲ 6.90 12 15.18%
Watsco Inc. WSO 111.00 100.57 ▼ 6.14 15 15.09%
Aqua America Inc. WTR 26.63 25.93 ▼ 3.82 15 5.38% pP
WhiteWave Foods Co. WWAV 35.87 33.45 ▲ -1.99 0 0.00% Buy
Woodward, Inc. WWD 47.66 49.24 ▼ -3.90 8 -1.61% w
Cimarex Energy Co. XEC 110.09 118.80 ▲ -3.32 18 -9.08% w
Exelis, Inc. XLS 24.13 16.94 ▲ 2.52 2 35.71%
Alleghany Corp. Y 467.56 437.86 ▼ 1.53 48 15.83%
35. Zebra Technologies ZBRA 87.15 74.21 ▲ 6.36 9 14.31%
Investing approach for weekly reversal levels:
* Conservative investors can go with the normal buy and sell signals only and negate the info about speculative
buys and short selling. This is a trend following method, so you will not buy at the bottom and there will be some
“give-back” at the end of a trend. The aim is to participate in the bulk of a move with a minimum of risk. When you
see an "Add" signal you can increase the position by buying more. This means you build bigger positions in stocks
that are going up.
* Short selling can be done on regular sell signals or on "add to shorts" (AddSh). Short positions are best covered
as soon as you see MoM turn up or on the first regular buy signal (Buy or wBuy) that appears after you went short.
Short selling is not for everybody. Make sure you know what you are doing.
* Speculative buying opportunities appear when MoM starts going up for a stock that has been in bearish(red)
mode for a while. This can allow you to pick up stocks near a major low. But some care needs to be taken. Try to
buy near the recent low, and use a properly positioned stop-loss, e.g. just below the recent low, because not all
those speculative buys will work. Keep losers small and let the profits run. You can take some partial profits when
the stock comes close to its reversal level and let the rest run for a regular buy if the stock breaks out above the
reversal level, which triggers a normal buy signal. Note: struggling companies may never recover, so this method is
best used on ETFs or on stocks of companies that are in good financial shape.
The MoM indicator
The MoM indicator shows market momentum on a numeric scale between +10 and -10. You could compare it to
the Richter scale for earthquakes, or a market thermometer if you want.
Various levels in the MoM indicator correspond to market mood as follows:
* +8 to +10: very optimistic – euphoric
* +5 to +8: optimistic
* +3 to +5 : positive
* -3 to +3: neutral
* -3 to -5: negative
* -8 to -5: pessimistic
* -10 to -8: very pessimistic – depressed
Besides the level itself, we also pay attention to the direction. In a healthy bull market, the MoM will be rising
together with the market. When MoM starts going down in a bull market (green), it is an indication that the market
may have peaked out or has started a sideways pause, and that’s when market mode sets to light green. In a rising
market you will typically find MoM hovering between +3 and +10. Market pullbacks will generally end with MoM
bottoming out in the neutral zone ( -3 to +3) before turning back up. In a declining market you will typically find MoM
hovering between -3 and -10. Market rebounds will generally end with MoM peaking out in the neutral zone ( -3 to
+3) before turning back down.
Q & A
Q: I prefer swing trading and your weekly signals seem to be rather slow. Do you have something faster too?
A: Sure. We also publish daily reversal levels, which are tailored for swing trading. Check it out on the contact
addresses given below.
Q: Where can I find more information about these reversal levels and MoM indicator?
A: You can find more materials here: http://lunatictrader.wordpress.com/key-reversal-levels/. More will be added in
the near future as well as example trades.
Q: I am a fundamental investor, can I do anything with these reversal levels?
36. A: Well, even if you select stocks based on fundamentals it will make a difference *when* you buy (sell) them.
Better timing can make a big difference, even for a long term buy and hold investor. For example if your analysis
shows you that company XYZ is great value, then you can still wait until the reversal levels give a buy signal ( or a
speculative buy) to get in. Just try and see whether it improves your results.
Q: Your predictions for last week didn't work very well. But your table always shows a lot of blue (profits). Why
should I believe this?
A: The reversal levels are not a prediction, they are an approach to trading. All you can do is try it in your own
trading (even paper trading) and see how it works. It will naturally take more than one week to see if a method is
good or not. You are also not required to believe anything. You can verify the "%Ch." numbers if you want. Just
take the Open on the Monday after the buy (sell) signal was given and calculate the change to date. It should
match what you find in the table. If that is not the case, feel welcome to contact us with your question.
Q: A stock I own is already trading below its reversal level, so it will probably turn to bearish mode this week. Do I
need to wait for the next Monday's Open to sell this stock?
A: If going into the close on Friday you see that one of your stocks is almost certain to close below the weekly
reversal level then you can already sell it with a MOC (market on close) order. Sometimes this will give you a
slightly better exit than waiting for next Monday's open.
Q: Do I need to take all buy signals in the list?
A: No. Maybe you don like IBM, or the leveraged and reverse ETF in the list, that's up to you of course. Also,
whenever a buy signal appears we can always check how far the stock is above its reversal level. That gives us an
estimate how much risk is in this trade, because the stock will be sold if it drops and closes below the reversal
level. E.g. it is possible that a stock jumps 20% on good news and is already too far above the reversal level when
the buy signal appears. In that case you can wait until the price comes back to the reversal level to pick it up. So,
that's where you can always use some discretion.
Q: Do I need to take all sell signals for stocks I own? What if I am sure my stock will recover soon?
A: If you intend to use the reversal levels properly, then the answer is: yes, always sell when a stock has closed
below its reversal level. Take the profit (or loss) and move on to the next chance. True, sometimes a stock will
come right back after giving a sell signal, but many more times that doesn't happen and the stock just keeps
sinking for some reason that you may not hear about until weeks later (and maybe 20% lower). Then you will be
happy if you sold on the reversal sell signal. This is a discipline thing. Also remember, if the stock happens to come
right back then it will climb back above its reversal level and give a buy signal again. We can then just buy it right
back. That would costs us a few %, but that's a small price to pay for avoiding big losers. What we try to do is get in
on some big trending moves. We will take small losses on the trades that do not work, and that's the price we pay
to get in on big profitable moves.
Q: Shouldn't we buy more when a stock we own is down, in order to reduce our average cost basis?
A: With this method we do not add to losing positions. Only with the speculative buy signals we can decide in
advance to buy in up to 2 tranches, because we can have several speculative buy signals before a stock finally
gets into bullish Mode. A good strategy is to buy a half position on a speculative buy signal and then buy another
half postion on the next regular Buy signal. That gives us a full position and from then on we trade it normally. The
"Add" signals you see in the tables are always at subsequently higher prices, which is a "doubling up" strategy
(anti-Martingale). So, with reversal levels we do not double down on losers, we just sell them and wait for the next
buy signal. This has the advantage that we don't end up with overly big positions in poorly performing stocks that
may keep going nowhere for weeks or months.
Q: How many winners can I expect with this method?
A: It is better to ask how big the winners will be versus the losers. You may have only 40% winners and still come
out well ahead because the average win is much larger than the average loss. You can see in the table what kind
of winners you can expect. There are always stocks that show 20% or better profits (see "% Ch.") if you had taken
the latest buy signal (or shorted the latest sell). If you stick to buying stocks that are not too far above their reversal