Step 9 PTY 4.20.17

EOM Garden II Prep:  Step 9   4.20.17

Suppose a man’s line (position) is five hundred shares of stock. I say that he ought not to buy it all at once; not if he is speculating. If he is merely gambling the only advice, I have to give to him is, don’t.                                                                                                                                   Jesse Livermore

Mr. Livermore is discussing what I call ‘incremental buying or selling.’  After implementing this strategy, it reduced my pullbacks and enhanced my bottom line…and why I stress to ‘build gardens’ with either a half or one-third position at a time, instead of being all in.                                                                    DOE 

Today at 1 PM, CST I will be at the regional newspaper, the Southern to introduce my new ‘Intro” level column and answer questions on a Facebook Live session. Live is always interesting, to say the least. Check it out. 

Tomorrow is options expiration.  During the previous March expiration, SPX failed to break above the trendline-see blue box.  Will it repeat? 

We continue with the All-Star B-list candidates in our next Garden Growing application exercise.

Step 9

Allocate amounts/prices/shares of PTY from the All-Star B list (BA 2) on the worksheet. In this phase 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 PTY

1.  Has a decreasing dividend amount but still has a 8.97% spread
2.  The previous pullbacks were 22%, 16% and 10%
3.  The current rally is up 26%
4.  Since my Garden Growing goal is “share growing” 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
4.   RSI closes under 30
5.   Slow Stochastics crosses under 20

I highlighted (red areas) the indicator levels when PTY 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 $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

The rest of this week, we continue with the All-Star B 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.

If you have a question or comment, contact David England at

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