Simple Simon Scans 1.31.17


Invest at the point of maximum pessimism.                      Sir John Templeton

When trading, it takes maturity to sell at a high and buy when everyone else is selling.                                                                                                    DOE

Selling came in hard yesterday.  Today profit taking/selling continues although the indexes did not close at the low of the day. 

Update:  the next part of my analysis focuses on the Asset Allocation Worksheet.  You can find your sample in the Members Vault. 

Today I highlight trading candidates from my Simple Simon Plus Scans. The purpose; discover HPTs-higher (probability, profitability) trades, some before the SS signals hit. 

Simple Simon Long Candidates 

AIRG, KRED

Key Points…
During the last rally in November, after the price broke out it ran over 120%.  For
the last few weeks, the price moved sideways.  A SS Buy Signal has not hit but AIRG is looking ripe to do so. It would be wise to set alerts in case previous R-resistance (18.20) is broken.

Simple Simon Short Candidates

ALRM, AZPN, HSDN

Key Points…
A SS sell signal hit in January.  Since then, HDSN had a failed breakout.
Three days ago, it broke down through a short-term trendline and support. If it
fails to break out from here, look for more downside ahead.

Action Plan…

Study each candidate then transfer your favorites to a SS Long and SS Short watch list.   Determine your trade conditions and set alerts at your broker or Stockcharts.com. 

For example, if a trading candidate goes through a hard support/resistance level or jumps in volume by X%, then have an alert to give a heads-up when this happens. 

When your buy or short signals hit, you know what to do. No trading unless protective stops are in place.

Here is a link to setting alerts at Stockcharts.com.  Online brokers may have a trademarked name: for instance, “Trade Triggers” at TD Ameritrade.  For setting alerts at your broker, contact them and have them walk through the process.

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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