QOTD

"We finished a very productive summit that will be, I believe, a turning point in our pursuit of global economic recovery,"
- President Obama, source: World Economy at Turning Point

Sounds similar to "Mission Accomplished"... we'll revisit this in a year. We shall see.

The market is so Great Depression-y with its massive jolts up and down. "The Dow Jones industrial average is up 20.4 percent since March 9, its best four-week run since 1933" (source: http://www.msnbc.msn.com/id/3683270/). Again, we shall see, and let's hope the 1930's analogies fall into a distant memory.

You want to invest in this mutual fund?

• Top returns,
• Dramatically reduced exposure to losses,
• Almost no work... 5 trades in the last 20 years
  

Here's the magic... 20 years of the S&P 500.


The algorithm:

1. Buy when the EMA( 13 weeks) crosses above the EMA( 34 weeks)
2. Sell when the EMA( 13 weeks) crosses below the EMA( 34 weeks)
   

EMA is "Exponential Moving Average" and is basically the average price of something over a time period. So, the EMA(13 weeks) in this chart is the average weekly closing price of the S&P over the past 13 weeks. Any charting package will have it, like www.stockcharts.com: www.stockcharts.com/h-sc/ui?s=$SPX&p=W&yr=3&mn=0&dy=0&id=p11898256574

The current readings are EMA(13 weeks) = 850 and EMA( 34 weeks) = 932. These are slow moving indicators, so a future cross is months away.
run faster... yow, bill

Labels: investing, qotd