Selling yesterday-buying today. The SPX closed at 2159, within our range of 2170 and 2119. What is around the corner to get the SPX out of this trading range?
Today I audit a previous “Trading Tuesday” feature, SHLD from August 18, 2016. You can find the original post in the “EOM Members Vault.”
On August 10. 2016 I introduced you to a new group in the Playbook 2016/17, the Altman Z-Score group. I included this group for possible short candidates.
From my 8.10.16 post. “According to this 2000 study, the Altman Z-score successfully predicted bankruptcy between 80 and 90 percent of the time up through 1999. Tonight I feature the “Worst of Breed,” of the group.”
On August 17, 2016, I introduced you to SHLD and stated the following;
Tonight I tip my cap to those who followed the Simple Simon Sell Signals and are wondering where to lock in their SHLD profits.
Key Points on SHLD…
Let’s do the math. One hundred shares at $16.00 per share would be a $1,600 investment. If you bought to cover (BTC) at $11.00, the trade would have netted $5.00 per share or a 31% return minus commissions.
This is $500.00 per one hundred shares shorted. Profit from two hundred shares (shorted) would have paid for one year of a EOM membership with plenty to boot.
The bottom line…
Finally, don’t get greedy. You have not made a penny until your buy-to-cover order is executed and ALL profits are locked in.
Enjoy your evening,
Plan your work, work your plan, and share your harvest! Philippians 2:3-4
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.
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