September 22, 2019 — Buy DON’T Hold Blog Post

NASDAQ COMPOSITE 8117.67 -0.72%

This will be a shortened blog as is the case on occasion since the market didn’t move much during the week.

Market Performance

The stock market fell about 0.75% this past week after three weeks of rising prices.  Note that the horizontal red resistance line on the chart below has still not been taken out to the upside.  The market is still subject to news events impacting prices over the course of minutes. Note the all-time at 8339.64 still has not been reached.  If and when it gets there that will be another test to see if it can be surpassed. The fast MACD on the bottom the chart has turned negative.

For the:                 YTD        

NASDAQ            22.34%     

DJIA                    15.47%     

S&P 500              19.26%      

BDH Strategy        4.26%         

Dashboard Indicator Review – No Changes—Remains of +4

Indicator #2 NASDAQ Composite Index and 100-dma. This indicator gave a BUY signal on Thursday August 29. 

Indicator #5 NASDAQ Composite with MACD.  This indicator had a BUY signal on Thursday August 29.

Indicator #6 AAII Weekly Investor Sentiment Survey Bullish Percentage. The latest September 18, 2019 Bullish Percentage reading was 35.53% up 2.2 percentage points from the previous week.

Indicator #8 NASI Summation Index and MACD.  This indicator had a new a buy signal on August 30 thereby cancelling its July 25 SELL signal.  Refer to second chart on the next page

Dark   Liquidity

The performance of the portfolio is independently tracked by dark-liquidity. The link is as follows:  www.darkliquidity.com/index.php/strategies

When you can go to the website check “strategies.” to see the results of 23 strategies that the site tracks.  Our strategy is now 13th best down from 11th the last few  weeks. 

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 31 ETFs out of 44 have “pass” ratings compared to 36 the prior week, a minor decline.   

CURRENT SITUATION

As mentioned last Sunday, a change was going to be made to the portfolio on September 16 at the open.  As subscribers were informed on Sunday of last week, we purchased IWM and XLF and sold PDP and XLP.  Those changes are reflected in the Top 5 table sent as separate attachment to subscribers only. The portfolio consists of IWM, XLF, XHB, XLY, and QQQ.

GAME PLAN GOING FORWARD

Retain the existing portfolio and have appropriate stop LIMITs in place. We are still in a volatile market that is trying to reach new highs, so we’ll see what develops.

Interim updates are sent to subscribers during the week, as needed.  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.

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, if you use them, 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.”

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