June 8, 2019: Market Reverses to Upside

NASDAQ Closes at 7742.10 +289 pts or 3.88% for week

Overall Major Average Weekly Performance

The markets had another volatile week, but this time the market soared higher for its best performance since November 2018.  Finally, the DJIA had an up week after six consecutive declining weeks.

Both the NASDAQ Composite and S&P 500 advanced this week after four weeks of decline. All three major indexes closed below their respective 100-, and 200-dmas which is a positive sign going forward.   This may be the start of a rally to take out the 2019 highs or it may reverse back down. We will wait and see what happens.

For the week, the DJIA advanced 3.89%, the S&P 500 gained the most at 4.41%, and the NASDAQ Composite climbed 3.88%. 

For the:                 YTD        May

NASDAQ            16.69%     -7.9%

DJIA                    11.39%     -6.7%

S&P 500              14.62%      -6.6%

BDH Strategy        3.02%         0%

Indicator #2 generated a BUY signal SELL signal on Friday June 7 after recording a SELL signal on Wednesday Mary 29th.  Moreover, Indicator #5 (refer to first chart below) also recorded a BUY signal on Friday June 7, resulting in a new “3” BDH Dashboard BUY signal. 

Other Market Segments

Only provided to subscribers as of June 8, 2019.

Market Internals

Only provided to subscribers as of June 8, 2019

Dashboard Indicator Review Two Positive Changes

Indicator #2 NASDAQ Composite Index and 100-dma. This indicator finally broke above its 100-dma on Friday after closing below it on May 29, 2019. It is now on a new BUY signal (see chart immediately above and notice the red line in the green circle)

Indicator #5 NASDAQ Composite with MACD.  This indicator issued a slow MACD SELL signal (upper one) on May 1, 2019 while the faster MACD (lower one) had a SELL signal a day earlier.  Please refer to upper chart to review these signals.

Indicator #6 AAII Weekly Investor Sentiment Survey Bullish Percentage. The latest June 5, 2019 Bullish Percentage reading was 22.5% down from 24.8% 7 days earlier.  This indicator remains on its BUY signal of November 29, 2018, but it is still below the critical 25% level for the third consecutive week Any move higher from this level will signal another buy signal confirmation, as is has been on a BUY signal.

Indicator #8 NASI Summation Index and MACD.  This indicator is still on its April 23 SELL signal, but a market advance next week could turn it positive and create a “4” maximum BUY condition.  Currently, only the fast MACD has had a positive MACD crossover on Friday. See chart below.

Dark Liquidity

The link is as follows:

www.dark-liquidity.com/index.php/strategies

You can go to www.dark-liquidity.com first and then hit strategies.  Our strategy is still 14th best out of 23.

BDH Decision Page – BDH Dashboard ETFs 

Copy and paste the DecisionPage link into your browser:

https://www.etfscreen.com/buydonthold/bdh-decision-page.php

On ETFscreen.com, the Decision Page indicated that 29 ETFs out of 44 have “pass” ratings compared to 11 for the prior week.  This is a huge turnaround in one week. Note that 6 of the top 11 ETFs on the Decision Page are Technology related and all but SMH now have “pass” ratings,  a complete reversal from the prior week. 

You can easily check the top performers for the past 5-days and one month by going to the “Additional Fund Stats” tab on the right side of the BDH Decision Page, and arraying the Rtn-5d and Rtn-3mo column, respectively heading from high to low.

 Chart of All BDH Signals

Here is a chart showing all Dashboard buy and sell signals, paste it in your browser.  It may take a day or two to update as that is done by a subscriber.

http://stockcharts.com/h-sc/ui?s=$COMPQ&p=D&yr=2&mn=0&dy=0&id=p50034199149&a=250074893

Game Plan Going Forward

The NASDAQ’s next resistance level, if the NASDAQ moves higher, is at 7946.23 that was reached on May16. If that level is surpassed, then 8176.08 reached on April 29 is the next target, and is currently the high for the year. It may take a while for that to be achieved in the normally weak summer period, but anything is possible at any time, as we all have witnessed since 2016.

With the BDH strategy now on a “3” BUY signal, and possibly a “4” BUY signal when Indicator #8 signals one next week or later, investors can buy ETFs with appropriate STOP LIMIT orders in place.  The ETFs selected for this new BUY signal are only being sent to subscribers today.  Non-subscribers will be given that information next weekend.

Interim updates are sent to subscribers during the week, as needed.   No interim update was sent this past week.  Any subscriber who has recently sent in a payment and has not received this regular blog today should email me at lesmasonson@yahoo.com so I can check my records and correct any oversight.

Subscription to site is Available for Full Access and Interim Updates

If you would like to support this through the period ending March 31, 2020, then please mail me a check or $25 cash or use PayPal.  I do not have the capability to handle credit cards.  That would cost me another $1,200+  to change my website to allow log-ins and to setup a payment option. I cannot afford to do that.

Please use the PayPal category “friends and family, NOT “goods and services” or I will receive less than $25, as they take out a fee if you use the latter.

To send me funds using PayPal use only the following email address:

masonson@optonline.net

Please make your check payable to:

Les Masonson 20 Mansion Ridge Blvd, Monroe, NY 10950

If you would like to contact, please email me at lesmasonson@yahoo.com.  DO NOT send PayPal funds to this email as it will not work. Make sure to provide your email address with your payment.

Anyone who subscribers after April 1, 2019 will only receive this extra service until March 31, 2020 to make my bookkeeping simple.

Remember that you are responsible for your investments and how you manage them. This website was developed for educational purposes only and is not responsible for any actions you take with your investments.  If you decide to follow the BDH strategy, then you are 100% responsible for your investment outcome.  Make sure to check the BDH indicators daily during times when the market is volatile like now.  Just bookmark the 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 own risk profile.

Les

Leslie N. Masonson, MBA, CCM, is President of Cash Management Resources, a financial consulting firm that he founded in 1987. He is an ETF Strategist and currently actively trades ETFs on a daily basis Masonson’s 47-year working career has spanned financial advisory services, trading, investing, banking operations management, teaching, and cash/treasury management consulting. He was a Financial Advisor for six years offering investment management services to retail clients. Much earlier, he worked at three large banks for a total of 17 years as a Vice President at Citibank, an Assistant Vice President at Bank of America, and an Assistant Secretary at Irving Trust Company. He has written more than 140 articles – interviews with traders, software product and book reviews – for numerous financial publications including Technical Analysis of Stocks & Commodities (TASC), Active Trader, SFO and Futures magazine, as well as on Amazon. He has lectured on investing on several cruise lines including Crystal, Celebrity, and Norwegian. In November 2003, he spoke at the Intershow Online Investor’s Expo, on “Successfully Trading Stocks for a Living.” As of September 2016, he has been the ETF Columnist for TASC. Masonson has been researching and investing in the stock market for 60 years. He has invested in mutual funds, stocks, options, futures, ETFs, and commodities. Masonson has read more than 625 books on investing and trading, and he is proficient in technical analysis. He has used many investing and trading software programs over the years, including Telescan, OmniTrader, DTN, TradeStation, ULTRA, VectorVest, High Growth Stock Investing, TheWizard, and ETFReplay.com, as well as many brokerage charting programs including Fidelity Active Trader, Think or Swim, Interactive Brokers Trader Workstation, and Schwab’s StreetSmart Edge. He has been interviewed on business radio stations, as well as on cable TV on the Financial News Network and CNBC. The Wall Street Journal, USA Today, Institutional Investor, Bottom Line/Business, Inc., Las Vegas Review-Journal, and Advertising Age have interviewed him. His latest book Buy DON’T Hold: Investing with ETFs Using Relative Strength to Increase Returns with Less Risk was published in May 2010. He has previously authored the following books: All About Market Timing: The Easy Way to Get Started, (McGraw-Hill, November 2003 and translated into Chinese in February 2010) as well as the Second Edition published in April 2011, Day Trading On The Edge: A Look-Before-You-Leap Guide to Extreme Investing, (AMACOM, 2000), Cash Cash Cash: The Three Principles of Business Survival and Success, (Harper Business, 1990), Corporate Cash Management: Techniques and Analysis, (Dow-Jones Irwin, 1985. Co-edited with Frank Fabozzi), and the Corporate Treasury Management Manual (A.S. Pratt & Sons, 1998. Editor and Contributor). In April 2011, his first ebook was published with the title Profiting from ETF Rotation Strategies in Turbulent Markets. Masonson received a BBA in Finance and Investments from The City College of New York and an MBA in Operations Research from Bernard M. Baruch College. His master’s thesis title was “Statistical Evaluation of the Relative Strength Concept of Common Stock Selection.”

Leave a Reply

Close Menu