Moving Average ETF Trading Strategy Update for Week Ending 10-30-09

So the market took a significant dive this past week which causes stress for both the buy and hold investor as well as the moving average investor. But should the market continue to move down, the moving average investor does have an exit strategy.

Even though the S&P 500 moved down 44 points this past week, the 50 day moving average is higher than the 200 day moving average for all 10 ETFs from the balanced ETF portfolio.

Below is an example of the SPY (Spyders ETF). You can see that even though the actual price has moved lower, the 50 day moving average (green line) is still well above the 200 day moving average (red line). This is an indication to stay long (invested) but when the 50 day moving average moves below the 200 day moving average, this investor will be exiting (selling his positions).

To learn more about the ETF investing strategy, click here.