Tonight, I continue my stock analysis (alphabetical order) with (MDT) Medtronic, recommended by Dan Caplinger. Here is a link to his previous stats featuring an impressive 84.04% accuracy rate. Todd has some very interesting articles/columns and his reasons for buying MDT.
Here’s the routine to analyze each company, then formulate a game plan to make money with them.
What is MDT and what do they do? Here is their profile from Yahoo Finance.
How is MDT performing vs. the SPX in 2016? The SPX is up 2.73% while MDT is up an impressive 14.83%. MDT has the best return in this “Buy” group.
Seasonality from the last five years shows a price drop in April then peaks in May through July and October and November. Move the bar to see the two-year seasonality.
Chart and 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, MDT ran to $86.31. The SS Sell Signal gave specific signals not to go short and look for a SS Buy Signal that happened when the price broke back up through $84.
MDT Chart Highlights Note-I am using my swing trading template with 5-10-15 simple moving averages.
1. Is trading with a .71 correlation to the SPX
2. Increased Dividend
3. Ran 36%+ since the September 2015 lows
4. CMF and MACD Histogram are both positive
5. RSI or Slow Stochastics-buy territory but getting VERY overbought
Step Five Strategy
1. If one is long from the Simple Simon Buy Signal, make sure you have a trailing stop to lock in profits
1. Keep Simple Simon Chart front and center
2. Take profits incrementally
3 Calculate target price and tighten stops to lock in profits
4. Don’t get Greedy
No trading without protective stops!
If and when you are stopped out, don’t dwell on what you lost.
Focus on what you were able to keep, to trade with another day
Members–when you learn, follow and use these proven steps, you can see a difference
in your Profit and Loss results!
Who is next-NXPI.
Enjoy your evening!