Published October 28, 2026 · by Troels Højbjerg, Founder
The signal on every WallStreetBuys stock page counts four things: is the price above its 50-day and 200-day average, and is the MACD (a trend measure built from two moving averages) above zero on a daily and a weekly basis? Each yes counts +1, each no −1. At −1 or lower the page says Sell.
I recalculated that signal for every trading day since January 2023. A new sell signal appeared 2,615 times. This is where the stock stood 60 trading days later, compared with every day in the same stocks:
| 60 trading days later | After a new sell signal | Any day |
|---|---|---|
| Price change, median | +1.7% | +3.4% |
| Fell more than 10% | 29.2% | 26.9% |
| Rose more than 10% | 36.3% | 38.8% |
| Down more than 15% at some point | 41.5% | 38.7% |
| Cases | 2,615 | 145,099 |
Source: my own calculation on 195 US stocks covered by WallStreetBuys, signals from January 2023 to August 2026, closing prices from our price database. Only stocks still listed today.
Selling on the signal would have kept you out of some bad stretches, and out of a few good ones too: more than a third of these stocks were up more than 10% three months later.
One day may be too little to judge. So I also looked at every day a stock spent in each signal:
| Signal that day | Price change after 60 trading days, median | Down more than 15% at some point | Days |
|---|---|---|---|
| Strong Buy (+3 or +4) | +4.3% | 31.9% | 55,501 |
| Buy (+1 or +2) | +3.0% | 38.7% | 13,001 |
| Hold (0) | +3.9% | 40.7% | 30,881 |
| Sell (−1 or −2) | +2.5% | 41.8% | 11,824 |
| Strong Sell (−3 or −4) | +1.8% | 46.7% | 33,957 |
Source: the same calculation. Consecutive days in the same stock overlap.
Stocks in a strong sell signal did 2.5 points worse in the median than stocks in a strong buy, and almost half of them dropped more than 15% at some point in the next three months. The signal tells you which way the trend is running. It does not tell you where the price goes next.
Every stock on WallStreetBuys gets three scores from 0 to 100: value, quality and momentum (price strength). When all three were below 50, the stock fell more than 10% within three months in 39.5% of cases. For the other US stocks it was 22.7%. A drop of more than 20% along the way happened in 39.8% against 17.2%.
That is measured over 14 months (July 2025 to August 2026, 588 cases with all three below 50). The other warning signs are in How do I find undervalued stocks?
A stop-loss order sells when the price falls to a level you set. A trailing stop moves that level up with the price, never down. Both keep a small loss from turning into a large one.
The price you pay: with a tight stop, normal swings sell you out, and if the stock then recovers you are no longer in it. I have not measured stops on US stocks yet, so there are no numbers for them here.
In my data there was no day on which a sell signal reliably said: get out now. After a new sell signal the median US stock was up 1.7% sixty trading days later, against 3.4% on any day. Stocks in a strong sell signal did 2.5 points worse than those in a strong buy, and they had a drop of more than 15% along the way in 47% of cases against 32%. So the signal says more about the bumps ahead than about the end result. Weak numbers were a clearer warning: with value, quality and momentum all below 50, 40% of stocks fell more than 10% in three months. What I do not know is how the signal behaves in a long bear market, because there has not been one since 2023.
One thing to check: are value, quality and momentum all below 50 for any of your stocks? You can see all three on its stock page.
The current signal and the three scores for every US stock we cover are free, with no sign-up, on the stock pages. Stocks with a buy signal right now are listed under Buy signals.
A sell signal on its own told you little about the next three months. I recalculated the WallStreetBuys signal for 195 US stocks day by day since 2023: after a new sell signal, the median stock was up 1.7% sixty trading days later, against 3.4% on any day. The difference shows up in the risk: stocks in a strong sell signal had a drop of more than 15% along the way more often (47% of days against 32% in a strong buy). A clearer warning in my data was weak numbers: when value, quality and momentum were all below 50, the stock fell more than 10% within three months in 40% of cases, against 23% for the rest.
A stop-loss order tells your broker to sell if the price falls to a level you choose. It limits how much you can lose on a normal day, but in a fast drop the sale can happen below your level. The closer the stop, the more often ordinary swings sell you out. WallStreetBuys does not place orders; you set a stop with your broker.
A trailing stop moves up with the price but never down. It locks in part of a gain without you having to watch the stock. A tight trailing stop sells you out on normal swings; a wide one gives back more before it triggers. I have not measured trailing stops on US stocks yet, so I do not give a number here.
I cannot answer that for you; it depends on your money and your time horizon. My data says something narrower: a falling price on its own did not tell you what came next. Stocks with weak numbers kept falling more often than stocks with solid ones.
Read also: How to find undervalued stocks · Is insider buying a good signal? · How the signal works · Buy signals
This is information, not individual investment advice. The numbers are our own calculations on market data and may contain errors. Past results are no guarantee of the future. You decide for yourself — and remember to spread your risk.