Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Systematic Trading Plan: Current 50 Day Moving Average Signals for December 22, 2009

|Includes:BKF, DIA, EFA, EWG, EWH, EWT, EWU, EWW, EWY, EZA, GLD, HHH, IJH, IJR, ILF, INP, IVW, IWM, IYF, IYR, IYT, MDY, OIH, PKOL, PPH, QQQ, RSX, RWX, SLV, SLX, SMH, SPDR S&P 500 Trust ETF (SPY), USO, XHB, XLB, XLE, XLI, XLK, XLP, XLV, XLY, XME
Systematic Trader’s will use the 50 day Simple Moving Average as their trading plan. The 50 day moving average is a good trading plan for indexes and ETF’s that have trend following characteristics. It can produce disastrous results if used for every 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 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 chart shows the current 50 day simple moving average condition on the 40 most actively traded ETF’s. 
 
Security Name Trend2
BRIC IShares Stay Short
Coal Power Shares Stay Long
DB Commodity Index Stay Short
Diamond Trust DOW Stay Long
Energy Select SPDR Stay Short
EWY Stay Long
Internet Holders Stay Long
IPath India Index Stay Long
IShare Russell 2000 Stay Long
IShares 25 Index Stay Short
IShares Australia Stay Short
IShares Basic Materials Stay Long
IShares DJ Real Estate Stay Long
Ishares DJ Transportation Stay Long
IShares Financial Sector Stay Short
IShares Germany Stay Short
IShares Hong Kong Stay Short
IShares Latin America Stay Short
IShares Mexico Stay Long
IShares Mid Cap 400 Stay Long
IShares MSCI EAFE Stay Short
IShares MSCI Japan Stay Long
IShares Pacific ex Japan Stay Short
IShares S&P 500 Growth Stay Long
Ishares S&P Small Cap 600 Stay Long
IShares Silver Stay Short
IShares South Africa Stay Long
IShares Taiwan Stay Short
IShares United Kingdom Stay Short
NDX 100 Stay Long
Oil Service Holders Stay Short
Pharmaceutical Holders Stay Long
Russia New Long
S&P 500 Stay Long
Semiconductor Holders Stay Long
SPDR Consumer Descretionary Stay Long
SPDR Consumer Staples Stay Short
SPDR Gold Shares New Long
SPDR Healthcare Stay Long
SPDR Indutrial Sector Stay Long
SPDR International Real Estate Stay Short
SPDR Materials Stay Long
SPDR Metal & Mining Stay Long
SPDR Mid Cap Stay Long
SPDR S&P Homebuilders Stay Long
SPDR Technology Stay Long
Steel Market Vector Stay Long
US Oil Stay Short
You should not trade any systematic 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 systematic trading plans.
There is No “Holy Grail” in trading systems. Do not use the 50 day SMA or any other systematic trading system without proper research on the asset.
For questions on rule based, systematic trading, contact mark@seleznovcapitaladvisors.com
Stocks: SPY, QQQ, DIA, BKF, PKOL, XLE, EWY, HHH, INP, IWM, IYR, IYT, IYF, EWG, EWH, ILF, EWW, IJH, EFA, IVW, IJR, SLV, EZA, EWT, EWU, OIH, PPH, RSX, SMH, XLY, XLP, GLD, XLV, XLI, RWX, XLB, XME, MDY, XHB, XLK, SLX, USO