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Tactical Seasonal Switching Strategy Update
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By:
Jeffrey A. Hirsch & Christopher Mistal
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May 02, 2018
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As of today’s close, both the slower moving MACD indicators applied to DJIA and S&P 500 are negative (arrows in charts below point to a crossover or negative histogram on the slower moving MACD used by our Seasonal Switching Strategy to issue a sell). At this time, we are issuing our official Best Six Months MACD Seasonal Sell signal for DJIA and S&P 500. NASDAQ’s “Best Eight Months” last until June.
SELL SPDR DJIA (DIA), SPDR S&P 500 (SPY), SPDR Consumer Discretionary (XLY) and SPDR Financial (XLF). For tracking purposes these positions will be closed out of the portfolio using their respective average prices on May 3.
Continue to HOLD technology and small cap related ETFs as NASDAQ’s “Best Eight Months” ends in June.
Continue to HOLD SPDR Healthcare (XLV).
Consider adding to the existing position in iShares 20+ Year Treasury (TLT) on dips with a Buy Limit of $118.00. Consider a half position in iShares Core US Aggregate Bond (AGG) on dips with a Buy Limit of $105.75.
Traders/investors following the Best 6 + 4-Year Cycle switching strategy detailed on page 60 of the Stock Trader’s Almanac 2018 should heed this signal.
For positions not previously mentioned, please see table below for latest advice.
Disclosure Note: At press time, officers of the Hirsch Organization, or accounts they control held a position in IWM, QQQ and XLV.