Monday, April 13, 2009

Moving Average ETF Trading Strategy Update for Week Ending 4-10-09

Investor B checked the moving averages of the 10 ETFs from the balanced ETF Portfolio over the past weekend. There was no change this week for any of the 10 ETFs.

Investor B is long in 3 ETFs, the iShares Barclays TIPS Bond (symbol TIP), the iShares Barclays 1-3 Year Credit Bond (symbol CSJ) and iShares Barclays Aggregate Bond (symbol AGG). The 50 day moving average is above the 200 day moving average indicating to stay long for all 3 ETFs. The other 7 ETFs still indicate a stay out/sell position.

Background: Investor B is using a 50 day/200 day moving average strategy where when the 50 day moving average is above the 200 day, that is a bullish or buy signal. When the 50 day moving average is below the 200 day moving average, that is a sell/bearish signal. The balanced ETF portfolio can be viewed here as well as a more detailed explanation of the ETF trading strategies of Investor A (Buy and Hold) and Investor B.

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