EOM Q&A: Garden Growing and 2017 Q3 DIV. Report Q&A XI 10.20.17
Yesterday’s selling was met with buying ending with the DOW and SPX closing in the green.
On Monday, I analyze the action to see if there are cracks in the dam, so to speak.
Last week I stated, “If looking to enter at these levels, one needs at least a 5%+ run to break-even before a 5% pullback.
On Monday, we studied the last 5% pullback (Nov. 2016) and what happened afterward.
Today we study the CEF VIP candidates to answer…
1. Did these funds sell off with the market?
2. When the SPX recovered, did these candidates run?
1. Yes, all nine funds were hit with profit taking along with the SPX-red box
2. When the SPX ran, all nine funds had positive returns and three outperformed the SPX
Something to consider…
If playing the short game (trading) some funds were excellent candidates
If playing the long game (Garden Growing) zero funds underperformed the SPX, all continued to pay dividends-building additional shares.
What am I looking for?
If these funds had negative returns while the SPX rallied, then I would be cautious with these funds. As you can see-this was not the case.
Questions-send them to me at Eyeonthemarket@outlook.com
Enjoy your weekend!
David O. England