Monday, April 19, 2010

STS Unfavorable (Sell in May) Season Starts Tomorrow - April 20

According to Sy Harding, author of Seasonal Timing Strategy™ (STS), "Riding the Bear" and "The Street Smart Report," now is the time to watch the MACD indicator to look for the favorable exit point from the market based on the "Seasons in the Sun Strategy." I

If the market closes down today, as it was when I made this chart, then it could signal an "STS Sell" for tomorrow.

click chart courtesy of stockcharts.com for full size image

Harding applies the Moving Average Convergence Divergence indicator, or MACD, to the S&P500 after the average best time to leave the market, April 20, following the "sell in May and Go away" strategy. Likewise, around the best days on average to enter the market, October 16, Harding's STS looks for positive MACD to enter the market again.

Currently the MACD is positive with the MACD signal line above its EMA(9) line. You can watch the chart here to see when this signal goes negative.

Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 159% (a double plus another 59%!!) vs. the S&P500 UP a tiny 8.6% vs. NASDAQ UP a tiny 3.5% (All through 12/31/09)

In 2009, "Kirk's Newsletter Explore Portfolio" gained 33.5% vs. the DJIA up 18.8%
As of 4/15/10, the explore portfolio is up 11% YTD
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