Q. Professor, with the post-election rally, what charts are you watching to signal global opportunities?
A. Last week, I featured my largest Global Economies ETF 2016 Performance chart to identify trading opportunities when the momentum slows. It identified the Brazil Fund (EWZ) as the performance leader while the Italian Fund (EWI) was the laggard.
Today, I introduce my proprietary “Simple Simon” system to see if EWI and EWZ trades are developing. To get a head-start, click here for my FREE online class on how to trade my Simple Simon System.
First, what is my “Simple Simon” system? As a trader, Investor and Financial Educator, I have used and taught dozens of indicators in the last twenty nine years. My goal: perfect my trading system with no more than three factors, that leads to HPTs, higher probability/profitability trades.
After several years and a few thousand combinations that did NOT reach my goal, I finally discovered a combination that did.
For a Simple Simon Buy Signal to be generated, all of the following conditions must happen:
1. The price must be trading above the 30 Simple Moving Average.
2. Price must be above the short-term trend line (you must draw this.)
3. You must see green Chaikin Money Flow (CM) bars growing larger for three consecutive days.
4. Confirm all of the above with the MACD Histogram.
Let’s analyze the group performance leader (EWZ) for previous and potential long trades.
Simple Simon Buy Signals (A-B-C) are highlighted-see blue boxes. Run A and B had very respective returns of 43% and 24%. Currently, I do not see a long trade forming-Point D.
Thomas Edison once stated, “I have not failed, I’ve just found 10,000 ways that won’t work.” I am no Edison, but I do know how many years it took to analyze hundreds of set-ups to decide on one that works with a high probability of profitability.
Keep in mind, no system is 100% and neither is mine. Yes, I have my critics, everyone does. The majority are ones that have systems with 8-10 items to consider.
Next week, I give the criterion for my Simple Simon Sell (Short) signals. Learn how stop losing and begin making money like many of my Training Academy students. Each Tuesday, my members receive a list of long and short scan candidates to consider.
To get a head-start, click here for my FREE online class on how to trade my Simple Simon System.
Send your questions to eyeonthemarket@outlook.com. If selected, you will receive two weeks of my daily posts-on me!
David O. England
Davidoengland.com
Plan your work, work your plan, and share your harvest!
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.
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.
