Yesterday’s selling continues today with the US Index Futures trading in the red. Here is a good explanation to Wednesday’s selling.
Later today, the website will have the dates-times-topics for the Summer Seminar Series.
PLEASE DON’T BUY A TICKET–I saved seats for EOM Members. In June EOM Platinum members will receive an EOM VIP PASS to secure your seat. More details to come.
The goal of this series is to audit the ‘Big Five” stocks in 2007, to determine if “Simple Simon, sell signals were visible.” If so, we can use SS sell signals for when to take profits with the current Big Five.
In the beginning (Q1) of 2007, the “Big Five,” the largest market cap stocks (per etfdb.com) in the S&P 500 were Exxon Mobil (XOM), General Electric (GE), Microsoft (MSFT), Citigroup (C) and Bank of America (BAC). Their price action can heavily influence the movement of the index up or down.
Per the performance chart, General Electric is in third place and Citigroup was the laggard.
GE Key Points…
1. Did not trade with 100% correlation to the SPX
2. During the turmoil, raised the dividend amount paid
3. A SS Sell signal appeared-three times as the price tumbled after the top in November 2007
4. CMF gave more accurate signals than MFI
5. Trendlines were very accurate with the 6 SMA
1. Identify which indicators gave the best previous buy or sell signals
2. Implement the winning signals into your current game plan concerning your holdings
The remainder of the week, we continue to study the rest of the “2007 Big Five” to audit the quality of the SS system
This will lead to next week’s theme to evaluate the current “Big Five” to know when to take profits and put on our “Bear Suits”
Enjoy your day!
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 email@example.com.