Well last week I received the SELL signal to take profit on 1/4 of CEFL. Locked in $2 price increase. I am down to 3/4 position size. I will sell the other 1/4 when the 5 ema closes below the 20 sma and price confirms by closing below the moving averages. So far the last BUY signal has generated .95 in total coupon payments. on 2000 shares = $1,900 and price appreciation of $2,000 and some change. For rough total profit of $3,900 since late December.
As of last week 2000 shares value was $35,200. SELLING 1/4 raised $8,800 cash +$1,900 collected in coupon payments brings cash on hand to $10,700. Coupon payments are not reinvested. Instead are accumulated and added back in when next BUY signal is issued.
If I get the 5/20 crossover probably be in the $17.20 range….that would raise another $8,600 cash for total of $19,300 cash on side lines. I will then hold the remaining 1000 shares into the sell off to continue to collect income in form of the coupon payments. These coupon payments will be added to the $19,300 cash horde….until I get the next BUY signal.
1 – Monthly Income in form of a coupon payment
2- Timing model that realizes whipsaws and direction can chip away at your account so it only takes BUY signals never shorts.
3- Leverage down during down trends, leverage up during up trends.