EOM Market Recap 6.29.16 Motley Fool Buy List Analysis IRBT 4 of 8

 
Good Evening,
 
I have taken a hiatus from media interviews but decided to break the ice today.  Here is an interview with Will Stephens from WXAN where I explain the current situation and name some
trading opportunitie$. 
 

Tonight, I continue my stock analysis (alphabetical order) with (IRBT) I-Robot, recommended by Steve Symington. Here is a link to his previous stats featuring an impressive  63.24% accuracy rate.  Steve has some very interesting articles/columns.  Here are his reasons for buying IRBT.

 

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

 

Step One

What is IRBT-I-Robot and what do they do?  Here is their profile from Yahoo Finance.

 

Step Two

How is IRBT performing vs. the SPX in 2016?  The SPX is up 1.31% while IRBT is down -2.15%.  IRBT has the second best performance in this “Buy” group.

 

Step Three

Seasonality from the last five years shows IRBT July and September are the weakest months. Move the bar to see the two-year seasonality.

 

Step Four

Chart IRBT 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, IRBT traded sideways couple of days then dropped 12.4%.  The SS Sell Signal hit like clockwork. 

IRBT Chart Highlights   Note-I am using my swing trading template with 5-10-15 simple moving averages.
1.  Is trading with a .85 correlation to the SPX

2.  No Dividend

3.  Dropped since it’s May 2016 high

4. CMF and MACD Histogram are both negative

5.  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 volume jumps 20-30%

4. If CMF goes positive for three consecutive days-long candidate

5. And MACD Histogram goes positive-long candidate

6. And RSI crosses back up through 30-long candidate

7. And 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!

Who is next-KITE.

 

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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