Mark Seleznov's  Instablog

Mark Seleznov
Send Message
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
My company:
Seleznov Capital Advisors
  • System Trading Plan: The Death Cross and Golden Cross of the 50 Day and 200 Day Moving Average Current 50-200 Day Moving Average Signals for September 3, 2011  1 comment
    Sep 2, 2011 5:14 PM | about stocks: SPY, DIA, BKF, PKOL, EEM, XLE, EWY, HHH, INP, IWM, IYR, IYT, IYF, EWG, EWH, ILF, EWW, IJH, EFA, EEP, EWA, EWJ, EPP, FXI, IVW, IJR, SLV, EZA, EWT, EWU, OIH, PPH, RSX, SMH, XLY, XLP, GLD, XLV, XLI, RWX, XLB, XME, MDY, XHB, XLK, SLX, USO, JNK, BFK, RSP, DTN, UUP, DBC
    These Signals are long term trend following and watched by most market technicians. You may also sign up for our Free Weekly Commentary at the top right of our home page at www.seleznovcapitaladvisors.com
    The Golden Cross or Death Cross occurs when the 50 Day Moving Average crosses the 200 Day Moving Average. When the 50 Day Moving Average is crossing from below the 200, it is called “Golden Cross”. When the 50 Day Moving average crosses from above to below the 200 Day Moving Average it is called the “Death Cross”. This system is a very long term trading system and is often very late on entry and exit. It does have a fairly good track record with many Indexes and other assets. It makes very few trades as compared to shorter term moving averages like the 50 Day Moving Average system. It can produce disastrous results if used for every stock index, ETF, or stock.
    Other widely followed moving averages are the 50 day moving average and the 100 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 a 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 50-200 day moving average? There are so many people using the 50-200 day moving average, that we will often see extreme volatility in indexes when they cross both above and below the 50-200 day moving average. 
    The table below shows the current 50-200 day simple moving average condition on the 50 most actively traded ETF’s. 
    Security Name Golden Cross 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 New 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 Short 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 Long 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 Long 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 50-200 day moving cross system daily along with a number of other system trading plans.
    There is No “Holy Grail” in trading systems. Do not use the 50-200 day SMA or any other system trading system without proper research on the asset.
    For questions on rule based, system trading, contact
    mark@seleznovcapitaladvisors.com
     
    Stocks: SPY, DIA, BKF, PKOL, EEM, XLE, EWY, HHH, INP, IWM, IYR, IYT, IYF, EWG, EWH, ILF, EWW, IJH, EFA, EEP, EWA, EWJ, EPP, FXI, IVW, IJR, SLV, EZA, EWT, EWU, OIH, PPH, RSX, SMH, XLY, XLP, GLD, XLV, XLI, RWX, XLB, XME, MDY, XHB, XLK, SLX, USO, JNK, BFK, RSP, DTN, UUP, DBC
Back To Mark Seleznov's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • extremebanker
    , contributor
    Comments (2137) | Send Message
     
    Thank you for publishing these results on a regular basis. I find it very helpful.

     

    Hope you have a very nice labor day weekend!
    2 Sep 2011, 05:32 PM Reply Like
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.