Putting my Money where my mouth Is – Technical Indicators – Part 2

Today with the market dropping some 220+ points from 25,531 to 25,307 on the DOW I thought it would be a good day to test my MACD Theory that I wrote about in this article.

I went to Vectorvest and made my selection based on this criteria …

MACD Selection Criteria

and below is the 10 stocks that came up …

MACD 10 Stocks

So, today I am putting my money where my mouth is.  I had about $68,000 sitting in cash not doing much of anything.  It should be noted that I allowed the market to start trending back up this afternoon before making my investments.  Here’s proof from my brokerage account that I did – in fact – purchase shares of these stocks …

MACD Investment Purchases

This is my spreadsheet I have built for tracking these investments …

MACD Portfolio

As you can see there has not been much change.  However, there has been a little positive change.  You can see I invested about $65,000 of the $68,000 I had available.

I do plan to send out updates on this portfolio in this blog from time to time.  If you would like to have daily updates (for the days I am actually at the computer) please make sure I have your email address in the comments section of this article, or if you want to keep it private email me at freewavemaker@gmail.com and I will add you to a special portfolio update list I am building.

My exit strategy is as follows:

  1. Sell the stock if it falls by 10% in value over the next two weeks or 15% in value over a period longer than that.
  2. Sell the stock if it gains 50% in value … Remember:  Pigs get fed and Hogs get slaughtered.

Until one of the two above happen I plan to sit on them and collect any and all dividends as reinvestments in shares.  I will also see if some of those that are in increments of 100 shares or more have good options opportunity and potentially write some call options against them once they are up in value.  In the case of the call options … I would not have stop loss triggers on the stock.

Until next time … Learn what to buy, when to buy, when to sell and have a blast making money!

Jerry Nix, Freewavemaker, LLC

Disclaimer:

This information is not recommendations for you to purchase or sell any investments outlined in this article.  The information is being shared for educational purposes only.  I recommend that you seek the advice of a licensed and competent financial advisor before taking actions on your portfolio if you see a need to after reading this article.

The author of this article is long on all the stocks discussed herein.

Updated Values:

02/15/2019

MACD - Day 2

By the end of the first day (today) we have not only gained back on the 4 that were down yesterday … but over all we have increased total gains from $7.58 to $734.33 (up 1.13%) which is a lot more than I was earning with the money sitting in cash.

02/19/2019

Though I did not wait until the market closed today (I have other things to do) I wanted to share the results with you after 2 trading days … 5 calendar days:

macd - Day 2 of 5

Up almost another $100 today on a slow trading day with an up and down market since the open.  This also follows a three-day weekend in the market.  A $900 gain for five calendar days (2 trading days) is nothing to laugh about.  However, let’s give it some time and see how we end up later.  I will do another update at the close of business Friday … then perhaps weekly thereafter.

Stay tuned … more to come!

6 thoughts on “Putting my Money where my mouth Is – Technical Indicators – Part 2

    1. Yes, Helen … very happy … but at the same time I really miss my clients and friends that I acquired over the years. Please keep reading and I will keep writing.

    1. Mentioning Elvis … there is a special Sunday night (Sunday 02/17/2019) on NBC I think … or perhaps CBS. In any event, it should be pretty good if you and Jane like music. Hosted by Blake Shelton of all people. Thanks for the comment on the picture … I don’t do selfies very well.

    1. Both are in the garage … been too wet and too cold to ride. I am going to try to take it to San Antonio in June to see my granddaughter graduate from High School if I can talk the wife into going with me. Are you and Susan going to be home in June (the 5th or the 9th)? If so … may drop by to say Hi and let you finally meet my wife.

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