EOM Garden Growing Part III: EXG 7.20.17
Kudos to EOM Member Andrew T. for spotting the IGD error in yesterday’s report. It should have read 18.2% instead of 7.61%. Good catch.
The NASDAQ is making record (nominal) highs-how long will it continue?
In this part of my “Garden Growing” training, I analyze each candidate, extrapolate the number of shares purchased with an estimated target price then determine alert conditions.
Today I analyze EXG…
1. Is trading in correlation to the SPX or a 10% drop
2. Pays a monthly .076 dividend amount
3. Previous pullbacks were 20%, 10%, and 11%
4. Current rally is up 30.24%
5. Indicators are extremely overbought
Action Points for Setting Alerts
1. Price closes under the 6 SMA
2. MACD Histogram crosses back under zero
3. CMF crosses under zero
4. RSI closes under 30
5. Slow Stochastics crosses under 20
I highlighted (red areas) the indicator levels when EXG 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 $8.33 entry price.
This would purchase 60 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 email@example.com.
Tomorrow, I continue to analyze another CEF VIP candidate to establish an entry strategy.
Enjoy your day,
David O. England