Saturday, August 27, 2011

It's Effective!

Well, the "Bear Cross (15-week EMA < 40-week EMA)" is effective as of Friday's close, August 26, on the S&P 500.  (See the following chart.) 

  
What does the Bear Cross mean for investors?  It simply means that the primary trend of the market, as measured by the S&P 500, is now bearish; because the 15-week EMA < 40-week EMA.  Therefore, the strategy implies that investors should move out of equity funds and into money market funds, preferably a Treasury Bill fund, and/or an inverse ETF, such as SH,  For tracking purposes, I will use Monday's close on SH.  The stop-loss trigger will be a weekly close of the 15-week EMA above the 40-week EMA for the S&P 500.

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