NASDAQ’s Best Eight Months Update

By: Jeffrey A. Hirsch & Christopher Mistal

July 22, 2019

As of Friday’s close, the slower moving MACD “Sell” indicator applied to NASDAQ 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 end. As a result, Sell iShares US Technology (IYW), iShares Russell 2000 (IWM) and PowerShares QQQ (QQQ). For tracking purposes, these positions will be closed out of the Sector Rotation and Tactical Switching Strategy ETF Portfolios using today’s closing price.

Also consider adding to existing positions in iShares 20+ Year Treasury Bond (TLT), iShares Core US Aggregate Bond (AGG) and Vanguard Total Bond Market (BND) on dips.

Suggested buy limits:

TLT - $131.70

AGG – $111.20

BND - $82.90

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.