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.
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
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