Since the market has been in a general flat to up trend over the past three months, this week shows that all 10 ETFs have the 50 day moving average above the 200 day moving average. This is an indication that the moving average investor should stay long or invested in each of the 10 ETFs.
Below is an example of the SPYDERs ETF for the past three months with the moving averages included. You can see that the 50 day MA is well above the 200 day MA so the moving average investor would stay invested. Click on the chart for a larger view.
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.
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