EOM Market Recap 6.30.16 Motley Fool Buy List Analysis KITE 5 of 8‏

Good Evening,
Tonight, I continue my analysis (alphabetical order) with KITE Pharmaceuticals, recommended by Todd Campbell. Here is a link to his previous stats featuring an impressive 41.67% accuracy rate.  Todd has some very interesting articles/columns and his reasons for buying KITE.
 

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

Step One

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

Step Two

How is KITE performing vs. the SPX in 2016?  The SPX is up 2.69% while KITE is down -18.86%. KITE has the second worst in this “Buy” group.

Step Three

Seasonality from the last five years shows a price peak in May with July and August as the weakest months. 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, KITE dropped 15.9%.  The SS Sell Signal gave specific signals not to go long.

KITE Chart Highlights   Note-I am using my swing trading template with 5-10-15 simple moving averages.
1.  Is trading with only a .69 correlation to the SPX

2.  No Dividend

3.  Dropped 57% after its the May 2015 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-this has happened

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!

Since tomorrow is the Friday before Independence Day, I will not be publishing a Market recap.  I will resume on Tuesdaywith MDT then finish up the last two June Buy Candidates.

Then I jump into the NEW “Playbook 2016/17” groups.

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.
 

StockCharts.com

David England has sent you a SharpChart snapshot from StockCharts.com:

a SharpChart snapshot from StockCharts.com

Comments from David England:

You can access the “live” version of this chart here:
http://stockcharts.com/h-sc/ui?s=KITE&p=D&yr=1&mn=0&dy=0&id=p88221746570&a=464645268
(some advanced features and settings may not be available to non-members or basic members).
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