Seasonal MACD Buy Signal Update: Seasonal MACD Buy Signal Triggers By: Jeffrey A. Hirsch & Christopher Mistal | November 28, 2017 | Email | Print

Faster moving MACD “Buy” indicators applied to DJIA, S&P 500 and NASDAQ are finally all positive as of today’s close. The criteria to issue our Seasonal MACD Buy Signal have been satisfied. With all three indices confirming, we are now issuing our Seasonal MACD Buy Signal.

 

 

Buy SPDR DJIA (DIA), SPDR S&P 500 (SPY), PowerShares QQQ (QQQ), and iShares Russell 2000 (IWM). For tracking purposes, these ETFs will be added to the portfolio using their respective average prices on November 29. This price will be calculated by summing the open and close prices and dividing by two. Buy limits for DIA, SPY, QQQ and IWM are initially today’s closing price plus 1%. For example if today’s closing price was $100, then the buy limit would be $101 (close * 1.01 = buy limit).

 

Continue to hold positions in iShares Silver (SLV) and SPDR Gold (GLD). Seasonal strength in gold and silver has historically persisted till yearend and into the New Year.

 

The short position in SPDR Energy (XLE) was stopped out on November 6 when XLE closed above $69.40.

 

iShares DJ Transports (IYT) was added to the ETF Portfolio on November 7 at $174.56 and can still be considered.

 

Remaining open positions in the ETF Portfolio can also be considered at this time. Buy SOXX, XLY, XLF, XLB and XLK with a buy limit of today’s closing price plus 1%. For tracking purposes, these ETFs will be added to the portfolio using their respective average prices on November 29. This price will be calculated by summing the open and close prices and dividing by two. 

 

The Almanac Investor Stock and ETF Portfolios will be updated in the next regularly scheduled Alert on Thursday, November 30.

 

 

Our Seasonal Switching Strategy has been underperforming since the start of the “Worst Months” this year. Like any other strategy, our Seasonal Switching Strategy will experience periods of underperformance and periods of outperformance. During periods of underperformance we must resist emotion and remain focused on the long-term objectives of the strategy which are to capture the majority of the market’s gains while avoiding some of the market’s losses by being “out of the market” during the “Worst Months.” The long-term track record of the strategy remains intact and that is what we remain focused on, the long-term.