EOM 7.6.16 Motley Fool Buy List Analysis MDT 6 of 8‏‏

 

Good Evening,

 
The two-day selling spree ended today with all three indexes closing in the green-data from Stockcharts.com.  
 
Earlier today, Bill Gross released his monthly outlook titled, “Just a Game.”  Be sure and read the next to last line of his message and ask “where” you heard it previously.
 
Per my Front and Center Chart I, it looks like R-resistance at 2105 will be tested.  The CMF is increasing while volume is not.  Imagine how oversold the Bear Index and Volatility Funds will be if the SPX makes a run to new highs. 
 

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. 

 

Step One

What is MDT and what do they do?  Here is their profile from Yahoo Finance.

 

Step Two

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.

 

Step Three

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.

 

Step Four

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 

Step Six-Showtime

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!

 

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.

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