Step Two 2.23.17


EOM Garden Growing Prep:   Step Two 2.23.17     

Do not let what you cannot do interfere with what you can do. John Wooden

Once we complete the Garden Growing application series and you establish your first Garden, the sky is the limit to build “Financial Independence” for you and your family.                                                                                                           DOE


IMPORTANT

Each day (Ex-Monday) I will give a new “lesson” on how to build your garden. The worksheet in the “Members Vault” will be updated WEEKLY (Saturday) for your weekend research and study time.

Let’s study the Market Alternative Funds to see why they qualify for (safer) havens for our cash.

I identified numerous market (SPX) pullbacks-blue ovals. Note the minimal effect of each market pullback on any fund. Disregard the performance data on this chart. Why? Because the performance date is set from March 2009 when the market made the last bottom, and each fund has a different start date.

Step Two

Analyze MINT and determine the next buy/entry point.

Key Points…

1.   A Simple Simon Buy Signal was generated in March 2016
2.   Since the SS Buy Signal, MINT has ran 2.3%
3.   Since the SS Buy Signal in March 2016, MINT tested but did not close under         the 30 SMA
4.   One may decide to purchase with a successful test and retracement of the 30       SMA as long as the CMF remains green.
5.   These Money Market Alternate Funds trade different than regular Closed-End       and Exchange Traded Funds.

Action Points….

Make a watch list file for the name of your Garden. For instance, I use DOE Garden 2024 Watch List. Make another file for the actual Garden holdings once the funds are purchased.

Set an alert with your broker if the following conditions hit:
1.   A pullback to the 30 SMA
2.   CMF goes negative
3.   MACD Histogram goes negative

Per the worksheet, no one knows the exact price when the Simple Simon Buy Signal hits, so I extrapolated and used a hypothetical $100 per share entry price.

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

Tomorrow, I cover step three and analyze the entry strategy BOND.

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 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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