It was an interesting day with the DOW dropping 159 pts., then climbing back 123 pts. Properly placed stop sell orders then protective stops landed fantastic profits for some. All three major indexes closed in the red. OIL continued to be bearish, closing under $49.70.
The goal for my current series; analyze charts from the current Q3 2016, All-Star A & B list to see if they received a Simple Simon Buy Signal after the February 2016 pullback.
Why? To determine if my Simple Simon System has merit and should be considered for future Buy/Sell decisions.
Here is the Performance chart of nine of the ten All-Star A & B candidates. I can only chart nine with the Pro-Version at Stockcharts.com. Which fund is not on the chart? The answer, JPS with a 12% return.
Test I Out of the ten candidates, did the SS give successful buy signals?
A. Yes, on all ten candidates.
Test II After the SS Buy Signal, did the candidates have positive returns?
A. All ten candidates had positive returns from the lowest JPS 12% to the highest SMHD 90%. See individual charts for their respective run amounts.
Keep in mind; these candidates are for Garden Growing consideration but with returns from 12% to 90%, why not consider this list for trading candidates?
Question Did you take advantage of this February pullback?
Question If not-then Why?
Next Monday, I highlight previous SPX pullbacks plus commentary on what’s coming in November and December.
Enjoy your weekend,
David O. England
Plan your work, work your plan, and share your harvest! Philippians 2:3-4
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 firstname.lastname@example.org