Garden Growing-Why not now IV? 6.9.17


EOM Q&A:  Garden Growing-Why not now IV?  6.9.17

Recent quotes from Bill Gross…

1.  “Instead of buying low and selling high, you’re buying high and crossing your fingers,” Gross, 73, said Wednesday at the Bloomberg Invest New York summit.

2. U.S. markets are at their highest risk levels since before the 2008 financial crisis because investors are paying a high price for the chances they’re taking, according to Bill Gross, manager of the $2 billion Janus Henderson Global Unconstrained Bond Fund.

The interview link. 
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Today, I continue with my series to answer your question, “with the strength of the current market, why not start now?” 

When complete, I revisit our All-Star A&B and High Dividend CEF candidate plays, and the promised “Garden Growing Review” report.

My goal; have Garden Growing training II finished by Mid-July at the lastest.  Why?  In case previous seasonality cycles repeat.

Before we study pullbacks, we need to take a Macro look at the SPX seasonality charts to  confirm/determine trends.

Ten Year Chart


Twenty Year Chart

Key Points…

Per both charts, September is confirmed as the weakest month.

No one knows exactly when or what will start the next profit-taking.

Action Points…

1.  Determine and chart Garden candidates
2.  Have alerts set on all candidates 
3.  Have funds available in the correct account-IRA or trading
4.  Develop patience and wait for a pullback-value
5.  Use Simple Simon Buy signals for enter decisions

Key questions…

1.  If nearing or in retirement, can your portfolio survive a 20-30% drop?
2.  The current bull run of 8 years is in-between the last two-time wise 
3.  During every bull run–there are pullbacks
4.  Do you want to enter with the markets making new highs?
5.  What would it hurt to wait until at least the next five percent pullback to enter?

KEY POINT…
The 2017 fiscal year (institutional trading firms) ends in October instead of December.  I am looking  for 2017 profits (bonuses) to be locked in by that time.  
If so, this can lead to the buying opportunity many are waiting for!

Next week, we study what it takes (point wise) for a 5-10-20 percent pullback! 

Enjoy your weekend,

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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