He often pairs Consumers Discretionary with Consumer Staples (XLP-N) and we are getting to the critical time very shortly. Historically, you want to be in this one right around November and hold it until, on average, April 22. Just hit an all-time high today. Hang on until you start seeing technical signs of it starting to roll over. He’ll probably be taking profits on this one in the next week or 2.
This normally moves very strongly from around November each year to around this time of year. During the last couple of weeks, it has broken a short-term support level and established a downward trend. Starting to underperform the TSE Composite and is also trading below its 20 Day Moving Average. Now is the time to take some profits.
He was on the show in May 11/12. For the next 6 weeks, the S&P 500 dropped 10.5% so it was a good time to be in cash or cash equivalents. The same thing happened with the TSX which had a 9.4% drop. It was a good time to hide. He went 100% cash. He has the same recommendations this year in his 2 Top Picks.
(A Top Pick June 22/12. Down 26.78%.) This trade starts around the middle of July and goes through until the end of September. Gold is very seasonal and is not a longer-term investment.