Step 6 4.12.17


EOM Garden II Prep:  Step 6   4.12.17

We don’t have to be smarter than the rest. We have to be more disciplined than the rest.                                                                               Warren Buffett

The “Rules of the Road” document in the “Members Vault” is designed to help you become a more disciplined trader/investor. Do you have yours completed?                                                                                                                                                                                                                                                                DOE      ———————————————————————————————————-  

Thank you for your positive feedback from yesterday’s BLOZF post.   Next Tuesday, I feature another favorite from the group….growing in popularity.   

The coiled spring gets tighter with the SPX.  Yesterday, the lower trendline was tested.
                                                                  

Today we continue with our final All-Star A list candidate in our next Garden Growing application exercise.

Step 6

Allocate amounts/prices/shares of PCI 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 PCI

1.  Consistent dividend amount with a 6.84% spread
2.  The previous pullbacks were 16%, 9%, 9% and 7%
3.  The previous rallies were 31% and currently 22%
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 for Setting Alerts

1.  Price closes under the 6 SMA
2.  CMF crosses under zero
3.  MACD Histogram crosses back under zero-it is there now
4.  RSI closes under 30
5.  Slow Stochastics crosses under 20
I highlighted (red areas) the indicator levels when PCI made previous runs. 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 $20.00 entry price.

This would give us 25 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.

Tomorrow we begin the All-Star B Performance analysis for our next Garden. No daily message on Friday. 

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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