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Tactical Seasonal Switching Strategy Update
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By:
Jeffrey A. Hirsch & Christopher Mistal
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May 13, 2020
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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 14.
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 $116.75.
Also consider establishing a half position in Vanguard Total Bond Market (BND) with a Buy Limit of $87.25.
Traders/investors following the Best 6 + 4-Year Cycle switching strategy detailed on page 62 of the Stock Trader’s Almanac 2020 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
Buy SPDR Consumer Staples (XLP), SPDR Utilities (XLU) and iShares NASDAQ Biotech (IBB). For tracking purposes these positions will be added to the portfolio using their respective average prices on May 14.
All portfolios will be updated and emailed in tomorrow’s regularly scheduled Alert after the close.