Broad Category Chart Vectors

In the physical world, movement has two key properties: Direction and Magnitude. If we think of price patterns shown on charts in a physical world way, we can assign Direction and Magnitude to each chart.

In the table below, we show the UP, DN or FLAT Direction of the 5-week, 10-week, 20-week and 40-week simple moving average for each of 20 ETFs (Direction is evaluated based on the most recent three periods). The Magnitude of the price, 5-week, 10-week and 20-week moving averages is evaluated in terms of whether they are greater than or less than the 40-week moving average. Moving averages that are within 5% of the 40-week (either above or below) are labeled “Within 5%”.

The securities in the table represent a broad spectrum of asset categories from the fixed income and stock group, plus representation for real estate, commodities and the dollar.

click image to enlarge

This type of information (as updated) could be helpful at times when media announcements of price movements up or down fail to put them into a larger perspective. It could also be useful in conjunction with fundamental information when gauging whether to take a risk position in certain funds, or in guiding the legging-in process for those with cash wishing to scale into risk assets.

[Securities in table image: TLT, TIP, MUB, LQD, JNK, BWX, EMB, VTI, VEA, EPP, EWJ, VWO, FXI, IFN, EWZ, VNQ, DBC, GLD, COSWF.PK, UUP]

Disclosure: We own some, all or none of the identified securities from time-to-time in various managed accounts.