Moving Average Update 5-7-10

In my previous post, I mentioned how during a rapid market drop, the moving average investor would still not take action to sell ETFs because moving averages take time to change directions.
Below is an example chart of the SPY ETF for the three past months with the 50 day (green) and 200 day (red) moving averages plotted. Click on the image for a larger view.

You can see last week's big drop of the SPY and that the corresponding moving averages have only made slight movements down or flat. For a true moving average investor using the 50 day/200 day cross over strategy, you would take no action during short term rapid market declines.

For the 10 ETFs from the balanced ETF portfolio that we are tracking, all are showing the 50 day moving averages above the 200 day meaning we should stay long (invested). The 10 ETFs we from our portfolio are:

SPDRs
Vanguard Total Stock Market ETF
iShares Russell 2000 Index
Vanguard SF REIT ETF
Vanguard European Stock ETF
Vanguard Pacific ETF
Vanguard Emerging Markets ETF
iShares Barclays Aggregate Bond
iShares Barclays 1-3 Yr Credit Bond
iShares Barclays TIP