Investor B checked the 10 ETFs from his balance portfolio. He is looking for 50 day moving average cross above the 200 day moving average. Through last week he has still only been invested in one ETF, the iShares Barclays Aggregate Bond (AGG). After checking all 10 ETFs, there is finally a change. The iShares Barclays 1-3 Year Credit Bond (CSJ) is also indicating to go long. This ETF comprises 5% of the balanced portfolio so Investor B bought 5 shares. He is now long in 2 of the 10 ETFs.
Background: Investor B is using a 50 day/200 day exponential moving average trading 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 investing strategies of Investor A (Buy and Hold) and Investor B.
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