Investor B checked the 10 ETFs from his balance portfolio. He is looking for 50 day moving average cross abpove the 200 day moving average. Through last week he has only been invested in one ETF, the iShares Barclays Aggregate Bond (AGG). After checking all 10 ETFs, there is still no change. The moving averages for the other 9 ETFs still indicate to stay out. So for another week Investor B holds the vast majority of his portfolio in cash. This is a long term investment strategy so patience is a virtue.
Background: Investor B is using a 50 day/200 day exponential 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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