Here’s the routine to analyze each company, then formulate a game plan on how to make money with them.
What is GILD-Gilead Sciences and what do they do? Here is their profile from Yahoo Finance.
How is GILD performing vs. the SPX in 2016? Click on link or see attachment
SPX is down -.32% while GILD was down -19.64%. GILD had the second worst performance in this “Buy” group.
Seasonality from the last five years shows GILD rallied in July and October then dropped going into the end of the year. Move the bar to see the two-year seasonality.
Chart GILD to look for Simple Simon Buy or Sell Signals. Study which indicators worked for “Previous” Buy and Sell signals-VERY IMPORTANT!
After the column was released, GILD had a couple of up days and has sold off every day since.
GILD Chart Highlights Note-I am using my swing trading template with 5-10-15 simple moving averages.
1. Is trading with a .80 correlation to the SPX
2. Increased their Quarterly Dividend
3. Dropped 33% since July 2015
4. Has a multi-month “Descending Triangle” pattern in progress
5. CMF and MACD Histogram are both negative
6. No buy signal with RSI or Slow Stochastics
Step Five Strategy-Set Alerts
1. If price closes over the 15 SMA-long candidate
2. If price hits support of $80.83-short candidate-this alert just hit
3. If volume jumps 20-30%
4. If CMF goes positive for three consecutive days-long candidate
5. If MACD Histogram goes positive-long candidate
6. If RSI crosses back up through 30-long candidate
7. If Slow Stochastics crosses back up through 20-long candidate
Contact your broker to see if they have shares to short (non-retirement) account
1. Monitor alerts
2. Keep Simple Simon Chart front and center
3. Trade incrementally if/when entering
4. Only add to positions when price is going in your favor
5. Calculate target price and tighten stops to lock in profits
6. Calculate maximum pain-price you will get out of the trade if it goes against you
No trading without protective stops!
If and when you are stopped out, don’t focus on what you lost.
Focus on that you were able to keep, to trade with another day
Members–when you learn, follow and use these proven steps,
you will see a difference in your Profit and Loss results!
I promised a more-in-depth analysis-you got it!
What’s on deck for Monday-IRBT.
Enjoy your evening!