Of 2,320 stocks and exchange-traded funds in this week's analytical universe, 51 that are traded on the major American stock exchanges broke beyond their 20-day price channels, six to the upside and 45 to the downside.
In addition, eight that are traded over the counter broke out, two to the upside and six to the downside.
Within my analytical universe, 2.5% of symbols gave bull or bear signals, up from 1.1% the prior trading day.
The ratio of bull to bear signals is 1:6, compared to 1:1 the prior trading day, showing that the market switched to a bearish bias.
Six of the major-exchange symbols survived my initial screening, two having broken out to the upside and four to the downside. The upside symbols are CI and NFP. The downside symbols are FFIV, MSTR, MT and POWI.
None of the over-the-counter symbols survived my initial screening.
I'll do further analysis on the survivors that confirm their signals by trading beyond their breakout levels on Wednesday, June 12.
The symbols I'm analyzing are mid- and large-cap stocks having analyst coverage, as well as selected exchange-traded funds. I screened them for...
- the odds of a successful trades in the direction of the breakout since the present uptrend began on the S&P 500 weekly chart, on Oct. 4, 2011,
- a yield adjusted by those odds of 5% or greater,
- and absence of an earnings announcement within the next 30 days.
My cut-off point for bullish bias is a ratio of bull to bear signals of 2:1 or greater, and for bearish bias, 1:2 or smaller, rounded to the nearest whole number.