Seasonal MACD Buy Signal Update: “Best Six/Eight Months” Begin
By: By Jeffrey A. Hirsch & Christopher Mistal
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October 24, 2016
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Faster moving MACD indicators applied to DJIA, S&P 500 and NASDAQ are all positive as of today’s close. The criteria to issue our Seasonal MACD Buy Signal have been satisfied. With all three indices confirming, we are now issuing our Seasonal MACD Buy Signal. The “Best Six/Eight Months” have officially commenced.
 
[S&P 500 Daily Bar Chart]
[DJIA Daily Bar Chart]
[NASDAQ Daily Bar Chart]
 
Buy SPDR DJIA (DIA), SPDR S&P 500 (SPY), PowerShares QQQ (QQQ), and iShares Russell 2000 (IWM). For tracking purposes, these ETFs will be added to the portfolio using their respective average prices on October 25. This price will be calculated by summing the open and close prices and dividing by two. Buy limits for DIA, SPY, QQQ and IWM are initially today’s closing price plus 1%. For example if today’s closing price was $100, then the buy limit would be $101 (close * 1.01 = buy limit).
 
Also at this time sell AdvisorShares Ranger Equity Bear (HDGE) and iShares Core US Aggregate Bond (AGG). For tracking purposes, these ETFs will be closed out of the portfolio using their respective average prices on October 25.
 
Other open positions in the ETF Portfolio can be bought at this time. Buy IYW, IYT, IYZ, SOXX, XLY, XLB and XLK with a buy limit of today’s closing price plus 1%. For tracking purposes, these ETFs will be added to the portfolio using their respective average prices on October 25. This price will be calculated by summing the open and close prices and dividing by two. 
 
Remaining short stock trades in the Almanac Investor Stock Portfolio will also be closed out. Cover Lindsay Corp (LNN), Matador Resources (MTDR), Terra Nitrogen (TNH), Drill-Quip (DRQ), KKR & Co (KKR), Newfield Exploration (NFX) and Praxair (PX). For tracking purposes, these stock trades will be closed out of the portfolio using their respective average prices on October 25.
 
The Almanac Investor Stock and ETF Portfolios will be updated to reflect these trades in our next regularly scheduled Alert, after the close on Tuesday, October 25, 2015.
 
Disclosure Note: At press time, officers of the Hirsch Organization, or accounts they control held positions in AGG and HDGE. They did not hold any positions in the other ETFs or stocks mentioned in this Alert, but may buy or sell at any time.