Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. He will reduce his correlation to the equity market during the summer because that is a period of increasing volatility. There is a lack of positive catalysts to drive the market higher. You don’t want to be exposed to all that volatility. Investors expecting a decline between May and October might be disappointed. The average is only a decline of about 2 tenths of a percent. The market has actually been more positive than it has been negative about 62% of the time using the S&P 500. If you are not of the belief that we are going through a recession, you could actually do all right during the summer. For him, he wants to reduce correlation. This year there could be a higher than average chance of a sizable correction during the summer. He is seeing economic data that is a little bit soft. His biggest concern is if the Fed does not raise rates because the economic data is not strong enough to support it. S&P 500 is basically flat during the summer. There are no major catalysts to drive it higher. You get your major strength from October to May. The major sectors that pull down on the broad average are discretionary, industrial and materials. If you stay away from those and go towards lower beta securities, you can make plays in consumer staples, which is a big thing during the summer, such as healthcare, utilities and even some of more commodity sensitive areas such as energy, agriculture and even gold miners.

REITs are a good play in the summer. Usually you get falling rates during the summer. Investors want to be less correlated and reduce their risks to equities, and often trend towards the bond markets. From March to May is the 1^st period of seasonal strength for REITs, and then June through August is the next period. This one is heavily weighted into 2 securities, so if you want more of an equal basket, there is BMO Equal Weight REITs Index (ZRE-T).

REITs are a good play in the summer. Usually you get falling rates during the summer. Investors want to be less correlated and reduce their risks to equities, and often trend towards the bond markets. From March to May is the 1^st period of seasonal strength for REITs, and then June through August is the next period. The chart on this one shows the rising trend line pushing up towards resistance, and eventually you would expect a break out, which is a bullish resolution.

Energy stocks have been doing quite well. A lot of them bottomed in January and some have gone up 20%, 30%, 40%. This one hasn’t participated the way he would have liked to see. The chart shows a descending trend line from September, which is presently being tested. There isn’t too much reason to get in now.

Energy has a period of seasonal strength from January all the way through to May 9 on average, and this one has performed up to expectations. It is currently consolidating. We have the end of seasonal strength coming. If you are looking past the seasonality, you want to be into the refiners right now. From a seasonal play, he would recommend getting in right now, but from a longer-term perspective this is a place you want to be in the energy sector.

These stocks can do well all the way through to February and then they tail off. This one has been dreadful. Seasonally, you don’t want to be invested in material stocks during the summer.

Healthcare. Tends to do well during the summer. It is less correlated to the market, so you don’t see the seasonal shift that some of the other sectors do. The period for healthcare starts about now and runs through to September. (See Top Picks.)

Chart shows a straight line going higher from November on. The 20, 50 and 200 day moving averages are moving higher. Has been overbought over the past couple of weeks and it is starting to show signs of curling lower. There could be a pullback here. For an entry point, he would be looking more towards the 50 day moving average.

The longer-term trend is intact, higher highs and higher lows. This obviously needs some consolidation. Look towards buying this more towards the 50 day moving average. (See Top Picks.)

(A Top Pick Feb 13/15. Up 12.58%.) This one benefits from February all the way through to June. Spring is construction season and construction spending increases every year from March through to August.

(A Top Pick Feb 13/15. Up 5.6%.) The period of seasonal strength for stocks benefits all markets globally and this has been the beneficiary of that.

(A Top Pick Feb 13/15. Up 11.16%.) This has a period of seasonal strength from January all the way through to May, and the average gain per year is about 20%. Auto parts tend to benefit in the spring.

Transportation tends to do quite well between January and about May. This one hasn’t done too much and is now in the process of rolling over. It is underperforming the market.

Discretionary stocks tend to gain from October all the way through to May. During the summer it is a bit negative and volatile. Since October, this one has been flat. It is now rolling over and underperforming the market. 50 day moving average is pointing lower.

Material stocks (packaging) tend to do well from October all the way through to May. This one has done quite well. From a seasonal perspective, you want to look to rotate out of this. Look for more defensive areas in the market. This has done quite well, so take your profits.