It can be very expensive to try to convince the markets you are right.
I have seen many blow out an account thinking they were right but were on the wrong side of the market. Successful traders learn to set ego and pride aside-a tough task but so important. DOE
Question-Yesterday you featured a chart showing the strongest and weakest indexes. How do I use this information?
Answer-We must always know which index is driving the markets. Currently, it is the NASDAQ, so we will watch to see when profit taking comes in.
When shorting the market, it is a fool’s play to short the strongest index. Smart money will short or go long the inverse index funds tracking the weakest index, currently the small caps.
I plan to continue the Trading/Technical Tuesday theme. Two weeks of each month I plan to analyze a security. The other two, I plan to highlight SS Scan results.
Today I answer your question on BDX-Beckton Dickenson.
1. BDX is not trading with any regularity to the SPX
2. Has increasing quarterly dividend amount
3. Blue boxes highlight runs after a Simple Simon Buy signal hit; 2.9%, 11%, 22.1% and currently 8.9%
4. Pullbacks are highlighted in red; 16.2%, 17.5%, 11.1%
5. CMF is giving quality buy-sell signals along with MACD Histogram confirmation
1. With an increasing but low dividend yield, it is important to purchase BDX at value. Currently, it is still in a buy area but is trading at retail.
2. Watch for a pullback (profit-taking) then buy incrementally when a Simple Simon Buy signal hits.
3. No trading unless protective stops are in place.
Tomorrow and the rest of the week we revisit our All-Star A-list candidates. Don’t miss it!
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 firstname.lastname@example.org