Moving Average ETF Trading Strategy Update for Week Ending 1-29-10

Since the market has been moving down the past three weeks, I thought I would show an example chart of what I look at when I review the moving averages for the 10 ETFs from the balanced ETF portfolio.

Below is a 3-month view of VGK - Vanguard European ETF from Yahoo Finance. You can see that the 50 day moving average (green line) is still well above 200 day moving average (red line) even though the actually data has moved below the 200 day. (Click on the chart for a larger view.)


This is an indication to stay invested in this market. This chart is similar to the other 9 ETFs in the balanced ETF portfolio so there are no changes for this week, i.e. the moving average investor is staying invested in all 10 ETFs.

Here are the 10 ETFs we are tracking:

-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)