As of today’s close, the slower moving MACD “Sell” indicator applied to NASDAQ has turned negative. At this time we are issuing our official MACD Seasonal Sell signal for NASDAQ.
NASDAQ’s “Best Eight Months” have come to an early end. As a result, Sell SPDR Technology (XLK), iShares US Tech (IYW), iShares Russell 2000 (IWM) and PowerShares QQQ (QQQ). For tracking purposes, these positions will be closed out of the ETF Portfolio using tomorrow’s average price.
Also, at this time we will officially add to existing positions in iShares 20+ Year Treasury Bond (TLT) and iShares Core US Aggregate Bond (AGG) using applicable buy limits. SPDR Utilities (XLU) and SPDR Consumer Staples (XLP) can also be considered on Dips. New buy limits appear below in the updated ETF Portfolio.
This NASDAQ Seasonal Sell Signal is a reminder to tighten stop losses and/or take profits on technology related positions as NASDAQ’s seasonally favorable period has come to an end. Russell 2000 exhibits a similar pattern to NASDAQ and small-cap positions could also be trimmed.
Disclosure Note: At press time, officers of the Hirsch Organization, or accounts they control held a position in AGG, IBB, IWM, QQQ, TLT, XLU and XLV.
Stock Portfolio Updates
Over the past five weeks since last update, S&P 500 climbed 1.6% through yesterday’s close. Russell 2000 soared 5.6% over the same time period. Overall, the entire Stock Portfolio climbed 0.8%. Mid-caps performed best gaining 1.3%. Large-caps added 1.0% and Small-caps climbed 0.6%. This laggard performance was primarily the result of the large cash balance that was held in the portfolio for most of the month.
Last week’s basket of
Defensive Stocks has been added to the Stock Portfolio absorbing about half of the hypothetical cash balance. These stocks are all shaded in grey. The majority of the positions were added on the open on June 15 as most opened below their buy limit. The entire basket was up an average 0.9% using closing prices from June 20.
NJ Resources (NJR) was the best performing, up 5.6%. The worst performing position was
Intel (INTC), down 3.1%.
All 21 stocks can still be considered at current levels or on dips.
Disclosure Note: At press time, officers of the Hirsch Organization, or accounts they control held positions in BUSE, MHO and ORBK. They did not hold any positions in the other stocks mentioned in this Alert, but may buy or sell at any time.