Faster moving MACD “Buy” indicators applied to DJIA, S&P 500 and NASDAQ are all positive as of today’s close. With all three indices confirming, we are now issuing our Seasonal MACD Buy Signal.
Tactical Seasonal Switching Strategy ETF Portfolio Trades
Buy SPDR DJIA (DIA), SPDR S&P 500 (SPY), Invesco QQQ (QQQ), and iShares Russell 2000 (IWM) in the Almanac Investor Tactical Seasonal Switching Strategy Portfolio. These positions will be equally weighted in the portfolio. Buy limits for DIA, SPY, QQQ and IWM are initially today’s closing price plus 1%. For example if today’s closing price was $270, then the buy limit would be $272.70 (closing price * 1.01 = buy limit). For tracking purposes, these ETFs will be added to the portfolio using their respective average prices on November 6. This price will be calculated by summing the high and low prices and dividing by two.
Sell defensive “Worst Months” positions in iShares Core US Aggregate Bond (AGG) and Vanguard Total Bond Market (BND). For tracking purposes, these ETFs will be closed out using their respective average prices on November 6.
Sector Rotation ETF Portfolio Trades
In the Almanac Investor Sector Rotation Portfolio, Buy XLP, IBB, XBI, IYW, IYT, IYZ, SOXX, XLY, XLF, XLV, XLI, XLB, XLK and VNQ. Use a 1% Buy Limit for these positions as detailed above. For tracking purposes, these ETFs will be added to the portfolio using their respective average prices also on November 6. In addition to updated buy limits, stop loss and auto-sell prices have been updated.
SPDR Healthcare (XLV) was the sole position to be added before today’s Seasonal MACD Buy signal. XLV was added on October 29 when it dipped below its previous buy limit of 101.07. XLV’s stop loss has been raised due to recent gains and its auto-sell price has changed.
Seasonal weakness in crude oil has historically ended in the later stages of November. The corresponding position in ProShares UltraShort Bloomberg Crude Oil (SCO) could be sold outright into current strength or a tight trailing stop loss could be utilized. We will use a 2% trailing stop loss, updated daily using SCO’s close. We will close out SCO when it closes below its stop loss.
SPDR Gold (GLD) and iShares Silver (SLV) are on Hold.