Sunday, October 11, 2009

Moving Average ETF Trading Strategy Update for Week Ending 10-9-09

Update on the moving average investor: he is long in all 10 of the ETFs from the balanced ETF portfolio. He checks the 50 day/200 day moving average for each ETF weekly. It's been a little while since demonstrating what he reviews.

He uses Yahoo Finance, the 3 month view and adds the exponential moving averages of 50 day and 200 day from the technical indicators option (this is very easy to set up). This past week's SPY is shown below. Click on the chart for an easier to see view.



You can see the cross-over back on August 10 and that the 50 day moving average is well above the 200 day moving average for this week. A chart like this indicates to stay long (invested).

In checking all 10 ETFs like the example above, the 50 day moving average is above the 200 day moving average for all 10 ETFs so there is no change to the portfolio for this week.

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