Step 3 4.5.17


EOM Garden II Prep:  Step 3   4.5.17

The dictionary is the only place where success comes before work. 
                                                                                               Vince Lombardi

Once a garden is built, it takes 80-90% less (energy) input to maintain than to build.                                                                                                 DOE

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Today we return to the All-Star A list candidates in our next Garden Growing application exercise.

Step 3

Allocate amounts/prices/shares of FMO from the All-Star A list (BA 1) 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 FMO…

1. Increasing Quarterly dividend amount

2. The previous pullback was 67%

3. The previous rally was 147%

4. Since my Garden Growing goal is “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

5. I plan to buy incrementally and budget $500 for each purchase

Action Points….

1. Price closes over the 6 SMA-it is there now

2. CMF crosses over zero-it is there now

3. MACD Histogram crosses back over zero-it is there now

4. RSI closes under 30

5. Slow Stochastics crosses under 20

I highlighted the indicators when SMH began its 148% run. The institutions will have their alerts set for a duplicate scenario. I plan to do the same.

When we receive a Simple Simon Buy Signal, then go to the daily chart and confirm another SS Buy Signal before buying.

Per my DOE Sample worksheet, since no one knows the exact price when the Simple Simon Buy Signal hits, I extrapolated an (R1) targeted $14.00 entry price.

This would give us 35 shares. Any unused funds are swept into the Round Two (R2) allocation for future opportunities.

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

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 eyeonthemarket@outlook.com.

The rest of this week, we will continue with the All-Star A candidates for our next Garden.

Enjoy your day,


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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