EOM Garden Growing Part III: All-Star B Group PSK 9.1.17
No post on Monday-Labor Day.
First-does the US Economy continuing to grow?
The answer is yes with the Q2 GDP second estimate real GDP at 3.0%. Click here for details from associate Advisor Perspectives.
Second-the August employment results show 156K new jobs, short of the 170K predicted. Click here for the BLS data…..and here for additional info.
This is pre-Harey data.
In this part of my “Garden Growing” training, I analyze each All-Star B candidate, extrapolate the number of shares purchased with an estimated target price then determine alert conditions.
Key Information on PSK…
1. Trading in a positive correlation (.90) to the SPX
2. Pays a quarterly .60/share dividend
3. Previous pullbacks was 9%.
4. Current trading above the 6 EMA
5. Indicators are dropping
6. MACD remains negative
7. CMF is positive
Action Points for Setting Alerts
1. Price closes under the 6 SMA or 10% drop
2. MACD Histogram crosses back under zero-it is there now
3. CMF crosses under zero
4. RSI closes under 30
5. Slow Stochastics crosses under 20
Note the indicator levels when PSK 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, 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 $44.00 entry price.
This would purchase 11 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 me at firstname.lastname@example.org.
Next week, I will publish my “Garden Growing” report to establish entry strategies.
Enjoy your Labor Day weekend!
David O. England