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Mark Seleznov
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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
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  • Systematic Trading Plan: Current 50 Day Moving Average Signals for December 22, 2009 1 comment
    Dec 21, 2009 5:10 PM | about 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
    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
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    The Holy Grail to Investing.

     

    The utlimate business solution. The ability to cut the cost of any business expense, or just plain invest.

     

    Developed multiple arbitrages for the financial markets. Arbitrages that produce just a few percent a year, to arbitrages that produce over 30 percent a year.

     

    In 2001 i started developing, as of now, a dozen arbitrages. Over 30%/yr.

     

    Risk-Free Investing is not only possible, but in abundance. Just that people are told and taught that it is impossible. No risk has been in front of all, but not seen.

     

    I'm interested in selling, or partnering to sell, or partner in a business that uses my arbitrage.

     

    Thomas Adair
    HolyGrailToInvesting@h...
    21 Dec 2009, 11:05 PM Reply Like
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