ETF Portfolio Update: Rally Regains Momentum
By: Christopher Mistal
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November 30, 2017
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Our Seasonal MACD Buy Signal came later than usual this year, but it did arrive in time to capture DJIA best daily point gain of 2017, up 331.67 points (1.4%) today. S&P 500 and NASDAQ also enjoyed solid gains today after yesterday’s weakness, up 0.8% and 0.7% respectively. Although the major indexes did wander modestly higher throughout October and the majority of November, they did so without the Russell 2000 and frequently in defiance of their respective advance/decline lines.
 
[Market Performance and Advance/Decline Line Chart]
 
Indicated in the above chart, the improvement in the four advance/decline lines is accompanied by strength across DJIA, S&P 500, NASDAQ and Russell 2000. This across the board confirmation is encouraging and suggests the market’s rally has regained momentum. Geopolitical and headline risks remain, but the prospects of tax reform are improving while fundamentals and technicals remain firm. Further gains through yearend and into the first quarter of 2018 are expected.
 
ETF Portfolio Update
 
In accordance with Tuesday’s Seasonal MACD Buy Signal Alert, new positions in DIA, IWM, QQ and SPY have been established in the ETF Portfolio using each ETF’s average price from November 29. Positions in SOXX, XLY, XLF, XLB, XLK and IYW were also established using the average daily price method. Buy limits, stop losses and auto-sell (or price target) have been adjusted based upon each positions purchased price. All of these positions can still be considered at current levels or on dips below their respective stop losses.
 
As a reminder, “Current Advice” is based upon closing prices from November 29. The Buy Limit price is good 'til cancelled and supersedes the text in “Current Advice.” For example, a position may say “Buy Current” in the table, but is actually above its Buy Limit today. In this scenario do not purchase a position until it trades at the buy limit price or lower. More simply, we do not advise paying more than the Buy Limit price at any time.
 
Other positions in XLP, XLV, VNQ and IBB can also be considered when they trade at or under their respective Buy Limits. 
 
iShares Silver (SLV), SPDR Gold (GLD) and iShares DJ Transports (IYT) are on Hold.
 
[Almanac Investor ETF Portfolio – November 29, 2017 Closes]
 
Disclosure Note: At press time, officers of the Hirsch Organization, or accounts they control held positions in GLD, SLV, XLP and XLV. They did not hold any positions in the other ETFs mentioned in this Alert, but may buy or sell at any time.