Moving Average ETF Trading Strategy Update for Week Ending 11-20-09

Like the previous weeks, all 10 ETFs from the balanced ETF portfolio display the 50 day moving average above the 200 day moving average. This indicates that the moving average investor should stay long/invested.

Shown above is an example of the iShares Barclays TIP ETF 3 month moving average (50 day vs. 200 day). Click on the chart for an easier to read view. You can see the 50 day moving average is above the 200 day moving average which is an indication to stay long.

The 10 ETFs are:

-SPDRs (SPY)
-Vanguard Total Stock Market ETF (VTI)
-iShares Russell 2000 Index (IWM)
-Vanguard SF REIT ETF (VNQ)
-Vanguard European Stock ETF (VGK)
-Vanguard Pacific ETF (VPL)
-Vanguard Emerging Markets ETF (VWO)
-iShares Barclays Aggregate Bond (AGG)
-iShares Barclays 1-3 Yr Credit Bond (CSJ)
-iShares Barclays TIP (TIP)

Background:
The ETF investing strategy we use is a 50 day moving average/200 day moving average cross over strategy. This strategy is easy to use. When the 50 day moving average of an ETF crosses above the 200 day moving average it is considered a buy signal. If the 50 day moving average crosses below the 200 day moving average it is considered a sell signal.

This is a longer term ETF investing strategy that helps keep investors in the market during bull rallies, even during corrections, but gets ETF investors out if there is a more serious market correction like the bear market we just experienced, at least that's our goal.