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Tactical Seasonal Switching Strategy Update
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By:
Jeffrey A. Hirsch & Christopher Mistal
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May 01, 2019
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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.
Almanac Investor Tactical Seasonal Switching ETF Portfolio Trades
SELL SPDR DJIA (DIA) and SPDR S&P 500 (SPY) positions. For tracking purposes these positions will be closed out of the portfolio using their respective average prices on May 2.
Continue to HOLD Invesco QQQ (QQQ) and iShares Russell 2000 (IWM) as NASDAQ’s “Best Eight Months” ends in June.
Consider establishing a half position in iShares Core US Aggregate Bond (AGG) with a Buy Limit of $108.50.
A position in Vanguard Total Bond Market (BND) was added to the portfolio on April 12 when it traded below its buy limit. If not already purchased, consider establishing a half position in BND with a Buy Limit of $81.00.
Traders/investors following the Best 6 + 4-Year Cycle switching strategy detailed on page 62 of the Stock Trader’s Almanac 2019 do not need to heed this signal but may still want to consider reviewing positions and holdings. Consider trimming any underperforming or lagging positions and implementing or adjusting stop losses.
Almanac Investor Sector Rotation ETF Portfolio Trades
SELL SPDR Financial (XLF), SPDR Industrials (XLI), SPDR Materials (XLB) and iShares DJ Transports (IYT). For tracking purposes these positions will be closed out of the portfolio using their respective average prices on May 2.
All portfolios will be updated and emailed in tomorrow’s regularly scheduled Alert after the close.