EOM 7.8.16 Motley Fool Buy List Analysis UA 8 of 8‏‏‏‏

Good Evening,
 
After the June Employment numbers were released, buyers came in resulting in an extremely strong finish for all three major indexes-data from Stockcharts.com.
 
Currently, the SPX has ran well over 7% from the previous low.  My question-which day next week will profit taking begin?  Remember this question next week when it happens.  
 

Tonight, I finalize my stock analysis (alphabetical order) with (UA) Under Armour, recommended by Jason Hall. Here is a link to his previous stats featuring a 40.43% accuracy rate.  Jason has some very interesting articles/columns.  Here are his reasons for buying Under Armour.

 

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

Step One

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

 

Step Two

How is UA performing vs. the SPX in 2016?  The SPX is up 4.21% while UA is down -2.91%

 

Step Three

Seasonality from the last five years shows a price pop in January, March, and July, then drops in October through December. 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, UA drifted down to $35.56 then has rallied.  The Simple Simon gave buy signals around $38 and has now broken out.


UA Chart Highlights   Note-I am using my swing trading template with 5-10-15 simple moving averages.

1.  Trading with only a .70 correlation to the SPX

2.  No Dividend

3.  Dropped -40% since the September 2015 high  

4.  Recovered 47% from January to April 2016

5.  CMF is positive but decreasing

6.  CMF and MACD Histogram are both positive

5.  RSI or Slow Stochastics Extremely Overbought

 

Step Five  Strategy-Set Alerts

1. Price closes under 15 SMA

2. Volume jumps 20-30%

4. CMF turns negative

5. MACD Histogram turns negative

6. RSI crosses down through 30

7. Slow Stochastics crosses down through 20

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!

 

 Next Monday, I conclude with a review of these “Motley Fool Buy Candidates,” and performance since the article was released.

 

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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