Weekly Update: Exponential Moving Average (EMA) Strategy for the S&P 500

The week was not kind to equity holders. Please review my comments within the following chart:

Note: To enlarge the chart, double-click inside of it.

Since September 21, 2009, I have been 100% long SPY in my investment account with an average price of $104.24. As of Friday, May 7, SPY closed at $111.26, which is a gain of 6.73% from my average price of $104.24. My strategy for Monday, May 11, is to sell 60% of my SPY holdings. With the remaining 40%, I will place a sell-stop order at break even ($104.24). With the 60%, I will start to acquire 20% positions in each of the following ultra-inverse ETFs: DXD (Ultra-short DJIA), SDS (Ultra-short S&P 500), and TWM (Ultra-short Russell 2000 Small Cap). Once again, this is my strategy, which is high risk, for my investment account. It is not a recommendation. You have to decide your own risk tolerance. Those of you that have been utilizing the EMA strategy and are comfortable with it, I would recommend that you continue to invest according to the 15-week EMA and 40-week EMA game plan.