UPDATE: The Q2 High-Dividend Fund Report is scheduled to be released next week.
Today I review a Simple Simon Short Candidate (JCP) that hit my scans in 2016.
To analyze, let’s return to the JCP chart I featured in December 2016.
1. Top Box-JCP is NOT trading in correlation (.15) to the SPX
2. Second Box-No Dividend
3. Main Box-JCP showed up in a Simple Simon scans in 2016-see red vertical line
4. Main Box-a Simple Simon Sell signal hit in September 2016
5. Main Box-a Simple Simon Sell signal hit in December 2016
6. Price continues to drop
7. CMF-money continues to flow out of JCP
1. After the Simple Simon Sell signal hit, JCP dropped 12% and 55%
2. Execute daily-weekly scans to discover trade candidates
3. Consider pricing options call/put premiums after a SS Signal hits
4. Trading option premiums can extend your trading capital and limit risk, especially with expensive securities
5. Identify candidates and set alerts on all candidates
6. Develop patience and wait for Simple Simon Signals before entering
7. Tight stops are a must
NOT ALL SS CANDIDATES HAVE THESE RETURNS.
Enjoy your weekend!
David O. England
Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2
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.
DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.
If you have a question or comment, contact David England at firstname.lastname@example.org