For mutual fund holders, note that the S&P 500 (as traced in the exchange-traded fund SPY), has pierced below an upward-pointing 12-month moving average, before retreating above it.
A monthly close below the 12-month moving average would signal that it's time to move money out of an S&P500 mutual fund and into cash.
Under the rules, the entry signal on July 31 would have gotten you into the S&P 500 fund at $87 on SPY. An exit this month at $107, just below the moving average, would let you exit with a 20% profit in 10 months.
Not too shabby at all, considering that we're talking about long-term trading in vehicles that discourage active management of your funds, especially retirement funds in a 401(k) or IRA.
No comments:
Post a Comment