With the market in a significant decline since early May, I wanted to show what the moving average investor is seeing in the SPY (he is long in this ETF). The chart above shows the actual data along with the 50 day (green) and 200 day (red) moving averages.
You'll notice that even though the SPY has lost 10 points since early May, almost 10% of it's value, the 50 day moving average still has a ways to go before crossing below the 200 day moving average which would be the time to exit the long position.
As I've mentioned several times before, the 50 day/200 day cross over strategy is a long-term investing strategy to try and catch long moves up and down. We started tracking a hypothetical portfolio in March of 2009 so it is still undermined if this strategy is better than plain old Buy and Hold.
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