Monday, May 29, 2017

Timing the market is not wise:

But if you must try - we use a 26-Week Price Channel on the TSX as replicated by the S&P/TSX60 iShares ETF (XIU). Investors should remain fully invested during a “buy” and then go to a 10 to 15% cash position during a “sell” signal.

A 26-Week Price Channel (6-month) is a best fit for the volatile TSX60 index.

The last signal on the TSX60 was a BUY on May 27, 2016 at 20.82 on the index. On our chart – a weekly on the XIU we have noted the top and bottom price channels. Note also the mid line (dashed) which is an early warning – currently about the same number as the May 26 close on the XIU.

What ever happened to “Sell In May?” – in any event enjoy but your on your own with this call.

By the way - a 30-week Price Channel seems to work better for the S&P500.

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