EOM Q&A: Garden Growing–TOTL Q&A XIV 10.27.17
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Today I wrap up this series with BOND-MINT-TOTL as a safer-haven for cash.
Why? Check out their action during previous SPX pullbacks-blue ovals.
Today, I focus on TOTL and what to watch before entering.
1. Is currently trading with only a .30 correlation to the SPX
2. Previous end-of-the-year dividend action is highlighted-see the December 2016 spike
3. Previous pullbacks are highlighted with the largest pullback 3.5%
4. Previous buy signals are highlighted-vertical blue boxes
5. Check out the dropping RSI and Slow Stochastics
1. Note the MACD, CMF, and Slow Stochastic levels when buying came in
2. The monthly dividend is consistent
3. I will be watching to see if continued selling/profit taking comes in
4. The current rally, starting in January of 2016 is 4.1%
TOTL is not like other securities. If we are watching it for a steady, monthly dividend-paying safer-haven, Institutional funds are too!
While many want to catch a price bottom, picking an exact entry point can be difficult.
So what does this mean? TOTL is bought as a safer haven, where Institutions/Investors place funds after locking in profits from selling securities.
Next week, we analyze the updated Asset Allocation worksheet and wrap up this Garden Growing series.
Questions-send them to me at Eyeonthemarket@outlook.com
Enjoy your day!
David O. England