U.S. markets open in approximately ten hours. What influence will the Greek debacle have on our market? EURUSD opened $1.09. Not good for the euro but good for the dollar. Global investors are very nervous that the Greek problem will lead to a contagion for other European countries, especially Spain. What about our stock market, S&P 500? Well, for those of you that have been following my blog for quite some time, you know all about my "Exponential Moving Average Strategy."
This investment strategy states that when the S&P's 15-wk EMA > 40-wk EMA, the trend is bullish. Likewise, when the S&P's 15-wk EMA < 40-wk EMA, the trend is bearish. The following chart illustrates how useful this strategy has been since 1996. Currently, the market remains in a bullish trend, which has been the trend since the late 2011. So, what if the Greek contagion spreads to U.S. markets? Simply focus on the EMA strategy and let it be your investment guide going forward.
No comments:
Post a Comment