EOM 6.24.16 Motley Fool Buy List Analysis 3 of 8‏ GILD

 

Good Evening,

 
Tonight, I continue my stock analysis (alphabetical order) with (GILD) Gilead Sciences-recommended by Brian Feroldi. Here is a link to his previous stats featuring a 43.15% accuracy rate.  Brian has some very interesting articles/columns.  Here are his reasons for buying GILD.

 

Here’s the routine to analyze each company, then formulate a game plan on how to make money with them. 

 

Step One

What is GILD-Gilead Sciences and what do they do?  Here is their profile from Yahoo Finance.

 

Step Two

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.

 

Step Three

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.

Step Four

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

 

Step Six-Showtime

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!

 

DOE

When your Vision and Goals are Clear-Results will Appear!
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 England has sent you a SharpChart snapshot from StockCharts.com:

a SharpChart snapshot from StockCharts.com

Comments from David England:

Learn more about StockCharts.com!

copyright (c) StockCharts.com
This email was sent to eyeonthemarket@outlook.com, by thetraderseye@gmail.com. If you think that you have received this chart in error or to report abuse of our emailing feature, please contact support@stockcharts.com.







0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *