This will be a shortened blog, as is the typical case every other week.
The stock market had nice rally going until the tech stocks unraveled in the afternoon on Friday. The FAANG stocks fell 3% to 5% each. Small caps and financials led the way higher. And the DJIA actually gained. For the week the DJIA and S&P 500 were down 0nly 0.30% while the NASDAQ Composite tumbled 1.55%.
On June 6, Indicator #8 issued a BUY signal as the MACD crossed to the upside (see second chart below) This resulted in a BDH Dashboard reading of “4”. None the less, SMH was sold on Friday during the down swing hitting its 5% trailing stop, but ending with a profit of over 12% for the time invested. The Top 5 ETF portfolio is now 60% in cash.
Indicator #5 (see first chart) had a very slight MACD downard crossover on Friday, so we’ll wait for Monday’s price action to determine if this is a real sell signal. If it is, then the BDH strategy will decline to a “3” reading which is still a BUY.
There are only 24 stocks out of 52 with “pass” ratings on etfscreen.com, so we are not investing the 60% cash at this time.
Gold, oil, and fixed income stocks and ETFs saw declines last week.
Have a good week ahead, but be careful.
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.