September 8, 2019 Buy DON’T Hold Blog Post

NASDAQ COMPOSITE 8103.07 + 1.76%

Market Performance

This will be a shortened post, as the market has risen two weeks in a row and has finally taken out the horizontal trading range to the upside (see chart below).  There is not much to report except this breakout.

Indicator #8 issued a BUY signal on September 30, resulting in a BDH maximum “4” BUY signal.  Refer to the chart on the next page.

It took 22 days for the NASDAQ to break out of its trading range box shown above.  The next price objective is 8339 which was reached on July 26 and is only 2.9% away.  This past week the major averages advanced about 1.75% on average.  The eftscreen.com list of our ETFs had 8 “fails” and 36 “passes” and excellent performance.

This past week had 412 new 52-week NYSE highs vs. 392 the prior week, and the  number of new lows shrank to 136 from 310.  Another positive was the 52.3% of NYSE stocks above their 50-dmas which rose from 37.7% last week.  The BDH strategy is ranked 12th on www.dark-liquidity.com from 14th the prior week.  Here are two links to check out:

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

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

The BDH strategy remains 100% invested in its five ETFs –XLP, PDP, XLY, XHB, QQQ.  The portfolio is up 5.67% YTD compared to 14.88% for the DJIA, 18.82% for the S&P 500, and 22.12% for the NASDAQ Composite.

There is no guarantee that the market will make new highs, so make sure you use a defensive approach to protect your principal in case the market goes the other way.  We still have another 6 weeks until November and this upcoming next six weeks could be very volatile.

    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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