WLC U.S. Stock Trade Ideas – 5/8/2020

by | Friday, May 8, 2020 - 2:11pm

I’ve extracted the following ideas for U.S. stocks. Fundamentals have not been assessed. Information about cloud charts available upon request. Please use appropriate portfolio risk management measures such as protective stops.

The simple line and bar charts have been coloured to match my FAB indicator. This proprietary indicator generates one of 4 views, from most bullish (positive) to most bearish (negative). Think of the coloured lines as market traffic lights:

DARK GREEN (GO) – Bullish: High probability of increase;
LIGHT GREEN (get ready to go) – Neutral Bullish: Mild positive – some probability of increase or flat;
PINK (get ready to stop) – Neutral Bearish: Mild negative – some probability of decline or flat; and
DARK RED (STOP) – Bearish: High probability of decline.

FAB Indicator Testing
Confidence in my views will come from your level of confidence in the FAB Indicator. Using signal tests, we gauged the probability of gains after a 1-year period (52 weeks) once the FAB triggered a BULLISH view on weekly charts of the SPDR S&P 500 ETF Trust (SPY) compared to the S&P 500 Index as the benchmark. Note that a probability of gain above 60% provides strong confidence in an indicator’s ability to provide solid triggers. Over the 13-year test period, there were 139 times that FAB triggered a BULLISH view, resulting in a probability of gain of 80.6% 52-weeks later with median returns of 7.4% compared to the index’s 1.2%. Details available upon request.

By clicking on my name above, you’ll be taken to the list of all my previously published charts. For details about any of the charts and analysis, my contact information can be found on my website at: http://wealthlifecapital.com/


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