Today Stock Trader’s Almanac Editor Jeffrey Hirsch recommends four seasonal ETF trades.
“Two sectors enter favorable seasonalities in the month of July, Gold & Silver and Utilities. ... Gold & Silver offer numerous possibilities to trade. Because gold, silver and the companies that mine and explore for the metals have been significantly beaten down over the past year, a diversified approach will be taken.
“As seasonal gold and silver strength begins, we will look to own both the physical metals and the miners at some of the most attractive prices available in years. Global X Silver Miners (SIL, NYSE Arca), iShares Silver Trust (SLV, NYSE Arca), Market Vectors Gold Miners ETF (GDX, NYSE Arca) and SPDR Gold Trust (GLD, NYSE Arca) can all be bought on dips below their respective buy limits (listed below in the table).
“GDX, GLD and SLV have ample assets and liquidity. SIL, on the other hand, has assets of $220 million and daily trading volume approaching 200,000 shares per day, significantly less, but still sufficient to trade.
“Gold and silver have both enjoyed a decade long bull market that many claim is over. Whether or not they are correct, I do not know. However, gold and silver have held appeal to mankind for thousands of years either as a store of wealth, as a currency or for their industrial applications. It is impossible to imagine that this would suddenly change just because both metals have fallen in price recently. It is, in fact, their current price that may make them even more attractive as their historically seasonably favorable period nears. Seasonal strength does not typically begin until late-July affording ample time to scale into new long gold and silver related positions.”
Jeffrey A. Hirsch, Stock Trader’s Almanac, www.stocktradersalmanac.com,
800-762-2974, 6/6/13