Step 14 3.23.17


EOM Garden Growing Prep:  Step 14   3.22.17

The elements of good trading are: (1) cutting Losses, (2) cutting losses and (3) cutting losses.                                                                        Ed Seykota
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Yesterday’s market action was normal.  Many times markets rest the day after a large move. Currently the US Index Futures are flat.  Keep an eye on XLF and XLV for clues. 

Today we wrap up the last VIP Closed End-Funds candidate CSQ. Tomorrow we end with an updated Performance chart to see what the Institutions are doing with the funds. 

The process to identify, allocate, set alerts and purchase our “Garden Growing” candidates may seem intimidating but after purchasing the first two to three funds, it should become muscle memory. 

I will cover the procedure in detail during Monday night’s training and more important, learn how to simplify the process. If you have not secured your seat, do so now.  

Step 14

Allocate amounts/prices/shares of the VIP Closed-End Funds (BA 3) on the worksheet. In this part of the training, I analyze each candidate, extrapolate the number of shares purchased with an estimated target price then determine alert conditions.

Key Points on CSQ

1.    Pays a (consistent) monthly dividend and a bonus in December
2.    In the last two years, it has dropped 23%, 20%, and 10%
3.    Since my goal is to share appreciation for the next seven years, I want to buy       after a price drop then only with a weekly SS Buy Signal, confirmed with a             daily SS Buy Signal

Action Points for Setting Alerts

1.  Price drops down to the 6 SMA
2.  CMF crosses under zero
3.  MACD Histogram crosses under zero
4.  RSI closes under 30
5.  Slow Stochastics crosses under 20

Per my DOE Sample worksheet, since no one knows the exact price when the Simple Simon Buy Signal hits, I extrapolated an (R1) targeted $10.00 entry price. 

This would give us 50 shares. Any unused funds are swept into the Round Two (R2) allocation for future opportunities.

We will wait to see if/which alarms hit. When hit, we will monitor until a Simple Simon Weekly, and SS Daily Buy Signal is generated before buying. 

For those wanting to be all in simply allocate all 1K. 

If having problems downloading the “ES Allocation Worksheet” (Members Vault), you may need to click on the “Enable Editing” button in your MS Office application to access the editable “Landscape” format. It should look the same as the PDF version. 

When my analysis is complete, I plan to compile all steps into a single PDF document, available exclusively to EOM Members.

If you have questions, please send to eyeonthemarket@outlook.com.

Enjoy your week,


David O. England

 

Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

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