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PatternDNA Pattern of the Week: GBJGF

|Includes: BIDU, Eli Lilly and Company (LLY)
Pattern of the week is from Baidu (NASDAQ:BIDU) and is comprised of a bearish day, bullish day, a catchall day, then two more bearish days.



This was a relatively common Pattern (across 18 U.S. stocks over the past 12 months).

Match
Level
Patterns
Found
1-Day
% Win
2-Day
% Win
5-Day
% Win
Average Return
/ Trade
Weakest 217 56 56 62 4.6
Weak 149 51 57 60 4.7
Neutral 103 57 59 53 4.6
Strong 35 55 72 48 4.5
Strongest 8 66 83 58 6.7

It was a very consistent Pattern with no edge in Return from the Weakest to the Strong Match level. Even at the Strongest Match the Average Return per Trade was quiet low. This was in part due to the relatively low Win percentage across all five Match levels.

Running a Market Scan at the Neutral setting against the S&P 500 found 97 matches. This was reduced to 10 at the Strong Match (You can view these 10 buy upgrading to Premium).

One of the matches was for Eli Lilly (NYSE:LLY). The stock trades at its 200-day MA and $34 support (currently at $34.23) with upside targets of $35 and $35.40. A 4.6% gain sets a target of $35.56 and 6.7% gain sets it at $36.32. But a break above $35 would strongly a favour a closing of the October gap down and a move to $37.