Garden Growing–BOND Q&A XII 10.25.17


EOM Q&A: Garden Growing–BOND Q&A XII 10.25.17

Time to analyze our personal financial needs and/or greed…

With the DOW and other indexes continuing to run, many EOM Members are looking at BOND-MINT-TOTL as a safer-haven for cash.

Why?  Check out their action during previous SPX pullbacks-blue ovals.

Today, I focus on BOND and what I am watching before entering.

Key Points…

1.    Is currently trading with a .49 correlation to the SPX

2.    Previous end-of-the-year dividend runs are highlighted

3.    Previous pullbacks are highlighted with the highest pullback 5.1%, beginning last October

4.    Previous buy signals are highlighted-vertical blue boxes

Action Points….

1.    Note the MACD, CMF, and Slow Stochastic previous levels when buying came in

2.    The last three years the end-of-the-year monthly dividend skyrockets-will it continue?

3.    I will be watching to see when buying comes in to capture any year-end distribution

4.    The previous year-end distributions were not paid until Jan of the next year

BOND is not like other securities.  If we are watching it for a high-monthly dividend-paying safer-haven, Institutional funds are too!

While many want to catch a price bottom and a super-high year-end distribution, picking an exact entry point can be difficult.

Also, any year-end distributions are not usually declared until 1-2 days beforehand, making the entry even more of a crap shoot.

Tomorrow, I feature MINT and TOTL on Friday.

Questions-send them to me at Eyeonthemarket@outlook.com


Enjoy your day!

David O. England


Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

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