Step Four 2.28.17


EOM Garden Growing Prep:   Step Four  2.28.17   

Know what you own, and know why you own it.                       Peter Lynch

The purpose of my daily fund analysis, is to know/learn each candidate
and entry conditions before buying.                                                         DOE

The DOW positive close streak ended today. The 12th straight record close-matches the longest ever since 1987.

Until I finalize the “Garden Growing” process, I will put a hold on my regular “Trading Tuesday,” Simple Simon scan posts.

Today I focus on the last fund in the Money Market Alternative Fund group (file A A3) in the 2016/2017 Playbook. Here is a link to the TOTL Profile.

Key Points…
1.   The spread on TOTL is 3.00% Current yield (3.65%) – Gross Expense Ratio         (.65%)
2.   Pays a monthly dividend
3.   How TOTL compares to BOND
4.   Three SS Buy signals were generated in the last year

Action Points-Setting Alerts…
1.    Price drops down to the 30 SMA
2.    MACD Histogram/CMF crosses under zero
3.    RSI closes under 30
4.    Slow Stochastics crosses under 20

Per my DOE Sample worksheet, no one knows the exact price when the Simple Simon Buy Signal hits, I extrapolated and used a targeted $48.50 per share entry price.

This would give us six shares. The unused funds are swept into the account money market account for future opportunities

Our 10% ($1,000) Money Market Alternative Funds are now allocated.

We will now wait to see which alarms hit first. When hit, we will wait until a Simple Simon Buy Signal is generated before buying. Since we only have $330 for each fund, I plan to buy all of the shares at once.

If the allocation amount were larger, I would implement a 50% or 33% incremental buying strategy instead of an all-in at 100%.

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 we near the end of this series, I plan to offer an “in-person” seminar to further explain the procedure and answer all question. Since my EOM Members are located from Seattle to Florida, I am working to offer it online with only a few day delay. The location-seminar details will be finalized soon.

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 them to me at eyeonthemarket@outlook.com.

Enjoy your evening,

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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