EOM Trading Tuesday: UA 11.22.16

Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.                                                                                                        Bernard Baruch

Notice: The 2016 Q4 Fund dividend report is now available in the “Members Vault.” The “Asset Allocation,” worksheet is next. I am finalizing the “SS Scan Report,” and plan to roll it out next Tuesday to hit my promised November deadline.
Tomorrow (Wednesday) 8:20 AM I will be on regional powerhouse WJPF (1340 AM) with the legendary Tom Miller. We will discuss many topics including; is this post-election rally is the real thing plus opportunities with OIL, Gold and Silver. Listen online here.

By late morning, the selling reversed and all three major indexes closed in the green. Let’s keep an eye on the SPX low volume to see if it improves.

Today is “Trading Tuesday,” and I focus on UAUnder Armour, a favorite with many EOM members.

Key Points…

1.  Is not trading in correlation with the SPX-has not participated in the post-election rally
2.  Dropped over 19% since the October low
3.  Previous support ($32.66) is now resistance
4.  CMF (20) is improving
5.  Options are available
6.  In the last five years, October, November, and December have been the weakest months
7.  I will be surprised if UA can hold a thirty handle-meaning trading in the $30 range
8. The next support level is around $28

How do I plan to play UA? I do not plan to short but am looking to play a bounce if money comes in after this current selling/consolidation.

Alert conditions…

1. Price trades under $30
2. CMF (20)/MACD Histogram turns from positive to negative
3. Volume increases 20%+
4. Slow Stochastics crosses above 20
5. RSI crosses above 30
6. Price closes above $32.61 on higher volume for a breakout play

If you don’t set alerts, you will have a lower probability of catching breakdowns/breakouts.

Enjoy your evening,

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 eyeonthemarket@outlook.com.

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