This will be a shortened blog as is the case every other week.
The NASDAQ Composite declined 0.33% for the week, followed by the S&P 500 up 0.08%, and the DJIA up 0.36%. In contrast, the BDH Strategy lost 1.21% this past week, much worse than the market.
By Friday’s close all five ETFs in the BDH portfolio had MACD negative crossovers, and they all had a”fail” ratings (see link below). This is in contrast to their “pass” ratings the week before. This is a serious situation.
Also, EWT’s rank fell from 13 on Thursday to 22 on Friday. This ETF will be sold on Monday’s open and the proceeds placed in cash since it fell below the “20” threshold sell criteria.
Here is the link to the Decision Page. Copy and paste it into your browser: http://www.etfscreen.com/buydonthold/bdh-decision-page.php
Also, note that Indicator #5 NASDAQ Composite had a minimal negative crossover (orange circled area). This could be the beginning of a correction or just a pause. In light of the fact that all the current five ETFs in the portfolio had negative MACD crossovers (place their ticker symbol in the above chart), and the NASDAQ Composite is about to cross over on Monday. extreme caution is urged.
Conservative investors should consider selling all current ETFs even though we have not had a BDH sell signal, as that takes time to occur, and profits can erode waiting for the sell signal.
If the market closes down on Monday, then I will sell the four ETFs as of the open on Tuesday. This is not the normal practice, but with the market near all-time highs, and the seasonal market weakness period upon us, it is a good time to lock in profits.
Have a safe week ahead!
Remember that you are responsible for your investments and how you manage them. If you decide to follow the BDH strategy, then you are responsible for checking the BDH indicators daily during times when the market is volatile. Just bookmark the two charts above and look for any signal changes. I may not available during the week to provide interim Dashboard signal changes. It is important to be pro-active, so as not to miss any Dashboard signals. Decide on and place your stop LIMITS that meet your risk profile.