Hey Sean, Looks like CEO gaped up pretty good today and getting stretched from the averages. Might…

Hey Sean, Looks like CEO gaped up pretty good today and getting stretched from the averages. Might be a good time to take some profits?

Hey Sean, when preparing to average into a stock, how time do you wait until you put in the next third of your investment? Two weeks? A month? Longer?

Here are CEO's next zones of resistance. It stands a great chance of breaching the first/lower level of resistance. But yes, the price is stretched far away from its 200-day moving average on its daily chart (chart not shown) but yet not all that far away from its 200-week moving average in the chart below. So if you're up some unusual percentage, then you can always choose to sell part or all of your shares. If you sell part, you can always sell half of your shares and place a stop-loss on the other half of the shares at or around your average breakeven price.

Tim, it's not a length of time. It's really if the drop is far enough percentage wise to make the averaging down worth while (by materially lowering your average breakeven costs).

Thanks Sean, I love this new format and how quick you can get back to me. I showed my my wife what you said and she says “ Is that really him getting back to you this quick?” Lol


Ha-ha! Normally, I can get back to someone pretty quickly. From Friday through Sunday, I was in West Virginia teaching a church on my book, The Six Keys To Financial Success. So I was away from the site through that time. But on the norm, yes, it's typically a fairly timely response. So glad you're enjoying this format.

Sean, always desiring to learn.... I think you would point out the a-b-c pattern that dropped CEO from $213 to $76 over a 55 plus month period of time. Wave one then took the stock up over $56 from $76 to $132 in 8 or 9 months. Wave two dropped it from there to $106 in about another 9 months. In the last 3 months or so it has increased about $37, evidently beginning wave three. So here is my question: Since wave three's and five's are usually longer and stronger than wave one's would it be correct to expect this wave three to likely increase the stock price more than $56 and last longer than 8 or 9 months (time period not as clear as the price increase)? Is that partly at least why you see the price breaking through the resistance around $154? The resistance at $175 to $186 is more of a challenge for two reasons: there is much stronger resistance in that area, and a wave three could be rejected for a while, or could transition into a wave four at that point. If a wave four happens there, when it is completed wave five will carry the stock to the $213 area, and perhaps well beyond. Thanks a lot for your teaching on all things related to investing and "good stewardship". I "think" I have learned a great deal from you, and look forward to better investing and learning much more as we move forward.


Larry, since wave 1 rose $56 and wave 3's are longer than wave 1's, you can add the $56 gain of wave 1 to the bottom of wave 2 (which is also the start of wave 3) and the stock should go further than that amount in wave 3 (which would be higher than $162). And wave 5 should take it likely higher than wave 3. So that's part of the reason why the first resistance should have no problem being broken. The other is that it's not a major point of resistance like the next higher zone which held many more times and over a longer period of time. It stands a great shot at eventually reaching its top resistance level and could very well break through it and go back to the $213 level or higher depending on how it deals with that top/red resistance zone. I'm glad you're learning lots. Thanks for joining me here. Help me spread the word about the site.