Mark Seleznov is the Chief Investment Officer of Seleznov Capital Advisors (SCA). SCA is a SEC registered investment advisory firm that performs advisory services for Mutual Funds, Trusts, 401K plans and Individuals. Mark supervises the asset allocation programs of SCA in a variety of strategic... More
System Trader’s and Market Timing traders may use the 50 day Simple Moving Average as their trading plan. The 50 day moving average is basic technical analysis. It is a good market timing trading plan for active trading in indexes and ETF’s that have trend following characteristics. It can produce disastrous results if used for every stock index, ETF, or stock.
Other widely followed moving averages are the 100 day moving average and the 200 day moving average. Some money managers will use these moving averages with a shorter moving average and use the cross of the shorter moving average above or below the longer moving average to generate trading signals. The Wall Street Journal displays the 65 day moving average in their charts. The goal of two moving averages and even 3 moving averages is to eliminate whipsaws that often occur with moving averages as a technical analysis indicator.
Why should you care about the signals produced with the 50 day moving average? There are so many people using the 50 day moving average, that we will often see extreme volatility in indexes when they cross both above and below the 50 day moving average.
The below table shows the current 50 day simple moving average condition on the 50 most actively traded ETF’s.
Security Name
50 Day Moving Average
Ticker
Barclays High Yield Bond
Stay Short
JNK
BRIC IShares
Stay Short
BKF
Coal Power Shares
Stay Short
PKOL
DB Commodity Index
Stay Long
DBC
Diamond Trust DOW
Stay Short
DIA
Energy Select SPDR
Stay Short
XLE
Internet Holders
Stay Long
HHH
IPath India Index
Stay Short
INP
IShare Russell 2000
Stay Short
IWM
IShares 25 Index
Stay Short
FXI
IShares Australia
Stay Short
EWA
IShares Basic Materials
Stay Short
IYM
IShares DJ Real Estate
Stay Short
IYR
Ishares DJ Transportation
Stay Short
IYT
Ishares Emerging Markets
Stay Short
EEM
IShares Financial Sector
Stay Short
IYF
IShares Germany
Stay Short
EWG
IShares Hong Kong
Stay Short
EWH
IShares Latin America
Stay Short
ILF
IShares Mexico
Stay Short
EWW
IShares Mid Cap 400
Stay Short
IJH
IShares MSCI EAFE
Stay Short
EFA
IShares MSCI Japan
Stay Short
EWJ
IShares Pacific ex Japan
Stay Short
EPP
IShares S&P 500 Growth
Stay Short
IVW
Ishares S&P Small Cap 600
Stay Short
IJR
IShares Silver
Stay Long
SLV
IShares South Africa
Stay Long
EZA
IShares South Korea
Stay Short
EWY
IShares Taiwan
Stay Short
EWT
IShares United Kingdom
Stay Short
EWU
NDX 100
Stay Short
QQQ.O
Oil Service Holders
Stay Short
OIH
Pharmaceutical Holders
Stay Short
PPH
PowerShares US Dollar Index
Stay Short
UUP
Russia
Stay Short
RSX
RYDEX S&P 500 Equal Weight
Stay Short
RSP
S&P 500
Stay Short
SPY
Semiconductor Holders
Stay Short
SMH
SPDR Consumer Descretionary
Stay Short
XLY
SPDR Consumer Staples
Stay Long
XLP
SPDR Gold Shares
Stay Long
GLD
SPDR Healthcare
Stay Short
XLV
SPDR Industrial Sector
Stay Short
XLI
SPDR International Real Estate
Stay Short
RWX
SPDR Materials
Stay Short
XLB
SPDR Metal & Mining
Stay Short
XME
SPDR Mid Cap
Stay Short
MDY
SPDR S&P Homebuilders
Stay Short
XHB
SPDR Technology
Stay Short
XLK
Steel Market Vector
Stay Short
SLX
US Oil
Stay Short
USO
Wisdom Tree Total Dividend
Stay Short
DTD
You should not trade any system trading plan without proper back testing and analysis of the trading characteristics of the index, stock or ETF you are trading.
These trading signals are provided courtesy of the website you are viewing. This information should not be used without research and advice from a financial professional.
Be aware that this condition can and will change any day in the future.
We monitor the 50 day moving average daily along with a number of other system trading plans.
There is No “Holy Grail” in trading systems. Do not use the 50 day SMA or any other system trading system without proper research on the asset.
For questions on rule based, system trading, contact
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System Trading Plan: Current 50 Day Moving Average Signals for September 2, 2011 0 comments
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