June Ends Nasdaq's
Best Eight Months

By Jeffrey Hirsch
Stock Trader's Almanac Investor

      June ends Nasdaq's Best Eight Months. This Best Eight month strategy exists because June has proved better for Nasdaq over the years. Since 1971 the Dow has been up 19 times in June and down 14 for an average 0.3% gain, ranking 10th. June ranks 7th for the S&P; up 20 down 13; average +0.8%. Nasdaq averages a 1.2% June gain, in 5th place rising 21 times and falling 12. Nasdaq has faired even better election years averaging a 2.9% gain.
       Our Nasdaq MACD Seasonal Sell Signal can trigger anytime after June 1. With Nasdaq's June record, we'll look to lock in gains on our QQQ and ONEQ ETF holdings.
      Despite last year's post-Iraq July through October approximate 15% gain, using the Nasdaq Best Eight Months MACD buy and sell signals has produced excellent long-term results. $10,000 invested in the Nasdaq composite only during the Best Eight Months implementing MACD timing since 1971 would have yielded a $600,000 gain versus a $7,500 loss during the worst four months.
      The Dow has risen 9 of the last 12 first trading days in June. On Monday of Triple-Witching week the Dow has been up 8 of the last 12 and on Triple-Witching Friday the Dow has gained ground 8 of the last 14 times. For the week after second Triple-Witching Day of the year, the Dow has been down 11 of 13 times.
      End-of-quarter portfolio pumping has driven Nasdaq up 11 of 12 last days of June yet forced the Dow down 9 of the last 12 times. Remember, the two-day FOMC meeting ends on June 30 and the market may rally on the relief news of the long awaited first Fed rate hike.
       Editor's Note: Jeffrey Hirsch is editor of Stock Trader's Almanac Investor, 184 Central Ave., PO Box 2069, Old Tappan, NJ 07675. Monthly, 1 year, $295. www.stocktradersalmanac.com.