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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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Seleznov Capital Advisors
  • Systematic Trading Plan: Current 200 Day Moving Average Signals for July 12, 2010 0 comments
    Jul 9, 2010 5:58 PM | about stocks: SPY, QQQ, 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
    A few Indexes have moved above the 200 day moving average. The majority of Indexes still are below the 200 day moving average even after this week’s rally.
    At Seleznov Capital Advisors we watch these key levels to see the Index breaks down or the trend continues up. You can get these trading alerts nightly from our Daily Trading Signals Service
    System Trader’s and Market Timing traders may use the 200 day Simple Moving Average as their trading plan. The 200 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 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 200 day moving average? There are so many people using the 200 day moving average, that we will often see extreme volatility in indexes when they cross both above and below the 200 day moving average. It has been reported that Endowments like Harvard and Yale use the 200 Day Moving Average in modeling their portfolios.
    The below chart shows the current 200 day simple moving average condition on over 50 most actively traded ETF’s. 
    Security NameTrend3Ticker
    Wisdom Tree Total DividendStay ShortDTD
    US OilStay ShortUSO
    Steel Market VectorStay ShortSLX
    SPDR TechnologyStay ShortXLK
    SPDR S&P HomebuildersStay ShortXHB
    SPDR Mid CapStay ShortMDY
    SPDR Metal & MiningStay ShortXME
    SPDR MaterialsStay ShortXLB
    SPDR International Real EstateStay ShortRWX
    SPDR Industrial SectorStay ShortXLI
    SPDR HealthcareStay ShortXLV
    SPDR Gold SharesStay LongGLD
    SPDR Consumer StaplesStay ShortXLP
    SPDR Consumer DescretionaryStay ShortXLY
    Semiconductor HoldersStay LongSMH
    S&P 500Stay ShortSPY
    RYDEX S&P 500 Equal WeightStay ShortRSP
    RussiaStay ShortRSX
    PowerShares US Dollar IndexStay LongUUP
    Pharmaceutical HoldersStay ShortPPH
    Oil Service HoldersStay ShortOIH
    NDX 100Stay ShortQQQQ
    IShares United KingdomStay ShortEWU
    IShares TaiwanStay ShortEWT
    IShares South KoreaNew LongEWY
    IShares South AfricaStay LongEZA
    IShares SilverStay LongSLV
    Ishares S&P Small Cap 600Stay ShortIJR
    IShares S&P 500 GrowthStay ShortIVW
    IShares Pacific ex JapanStay ShortEPP
    IShares MSCI JapanStay ShortEWJ
    IShares MSCI EAFEStay ShortEFA
    IShares Mid Cap 400Stay ShortIJH
    IShares MexicoStay LongEWW
    IShares Latin AmericaStay ShortILF
    IShares Hong KongStay ShortEWH
    IShares GermanyStay ShortEWG
    IShares Financial SectorStay ShortIYF
    Ishares Emerging MarketsStay ShortEEM
    Ishares DJ TransportationNew LongIYT
    IShares DJ Real EstateStay LongIYR
    IShares Basic MaterialsStay ShortIYM
    IShares AustraliaStay ShortEWA
    IShares 25 IndexStay ShortFXI
    IShare Russell 2000Stay ShortIWM
    IPath India IndexStay LongINP
    Internet HoldersStay ShortHHH
    Energy Select SPDRStay ShortXLE
    Diamond Trust DOWStay ShortDIA
    DB Commodity IndexStay ShortDBC
    Coal Power SharesStay ShortPKOL
    BRIC ISharesStay ShortBKF
    Barclays High Yield BondStay LongJNK
    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 200 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 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
     
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