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Long & Shorts Update from February 17th

|Includes: BPL, CSCO, DIS, LVS, MLCO, Nutrien Ltd. (NTR), SNI, WYNN

The past two day selloff put a spanner in the works of last week's Patterns. This is magnified when one considers there have only been four trading days. Jim's bullish picks for last week were: Potash (POT), Buckeye Partners (NYSE:BPL), Scripps Networks Interactive (NYSE:SNI), Disney (NYSE:DIS), Las Vegas Sands (NYSE:LVS), and Wynn Resorts (NASDAQ:WYNN). Bearish was he on Cisco (NASDAQ:CSCO) and Melco Crown Enteratinment (MPEL).

PatternDNA went into the week with a mildly bullish stance which increased over the five days. The selling of the past two days put paid to that; of the nine strong bullish outlooks predicted by PatternDNA, four were true. Ironically, of the two bearish outlooks predicted for day 1 and 2 post-Pattern in Scripps Networks Interactive (SNI), both of those failed too; an end count of four successes and seven failures.

PatternDNA uses a trailing target/stop set up to calculate an Average Return Per Trade (Average Return Per Trade assumes an initial stop of 10%, raised to 5% off the price reached on a 15% gain. Ultimate Profit Target of 25%) and simple above/below open price to assess win percentages. The losses of last week saw four lose over -6% with the rest falling between -1 and -3%. In practical terms, there would be a strong possibility of initial stop hits at the 10% mark for Potash (POT), Las Vegas Sands (LVS), Wynn Resorts (WYNN), and Melco Crown Enteratinment (MPEL).

The broad failure of the five-day PatternDNA projections suggests a systemic level of weakness (in the market at large) beyond the failure of individual Patterns. Buyer Beware.