[RESEARCH BLOG] · 2026-07-21
How to Read SELL RECOVERY (and Other Regime Labels)
By Pierre Brunelle · Founder & Research Lead
On LOPJLB, a directional call is rarely just BUY or SELL. It is paired with an HMM market regime label: Bull, Recovery, Ranging, Bear, or Crisis. Labels like SELL RECOVERY look aggressive in a UI — they are meant to be read as context, not as a slogan.
Two axes, one row
- Direction (DIR) — the nightly backtested call for the ticker, with profit factor, Sharpe, and related evidence.
- Regime (HMM) — the market-state classifier that conditions how you interpret the call.
So SELL + RECOVERY means: the ticker’s directional model is short-biased while the market-state model says the broad regime is Recovery. That can be a higher-friction setup than SELL + CRISIS, or a mean-reversion watch rather than a chase — depending on the rest of the score stack.
Full definitions: methodology.
How to use the pair in practice
- Scan first — filter the screener by direction and regime before drilling a name.
- Check evidence — open profit factor / Sharpe on the call; regime alone is not a trade.
- Align catalysts — on the earnings calendar, read EPS next to signal + regime so the session catalyst does not float free of desk state.
- Respect non-goals — this is research context, not personalized advice or execution.
Why regime exists
The same directional pattern does not mean the same thing in Bull as in Crisis. Publishing regime with the call is how LOPJLB avoids a single green/red arrow pretending to be a full research memo.
Live strategy context for Performance Score: SD50. Platform positioning vs screeners and valuation sites: /compare.
Bottom line
Read SELL RECOVERY as a structured pair — direction plus market state — then verify with evidence and catalysts. The label is a literacy tool for the desk, not a headline to trade blind.