Entering text into the input field will update the search result below

My Current View Of The S&P 500 Index: May 2022 Edition

May 02, 2022 5:20 PM ETAGG, EFA, IWM, SPY9 Comments
Walter Zelezniak Jr profile picture
Walter Zelezniak Jr


  • All of the ETFs I follow lost money in April.
  • I am reducing my exposure in SPY to 50%.
  • All ETFs are below their 10-month moving averages which is bearish.

Bull and Bear Symbol with Stock Market Concept.

undefined undefined/iStock via Getty Images

In this month’s article, I outline why I will change my allocation to the SPDR S&P 500 ETF (SPY) in May to 50% with the other 50% of my assets to cash. First let me review

This article was written by

Walter Zelezniak Jr profile picture
As an individual investor nearing retirement I am trying to build my financial assets in order to have a fulfilling retirement. I am interested in trading both long and short; or at least using inverse ETFs, to take advantage of market declines. Having long term and short term trading strategies, proper execution of my trading plan, and absolute investing results are my goals. I see my articles as a way to keep me focused on developing winning trades. I also expect to learn much from the feedback that is provided in the comments section.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (9)

FXPundit profile picture
Post FOMC minutes we have hit an interim bottom. Time to buy.
FXPundit profile picture
1. The Liquidation Phase
2. The Bear Market Phase.
3. The Historic Crash Phase.

Phase 3 is still to come. Jeremy Grantham has the SP500 at 2,500. Michael Burry has it at 1,862.
Jerome Powell just admitted this thing could "spiral out of control." With inflation at 8% there will be no Fed intervention to stop a crash and Powell has been confirmed for another term as Fed Chair. Inflation is the number one enemy now and they could not care less about the 10% which holds 90% of equities. For the SP500 this is just the start of it's losses. After the Bank of America call for 3,600 there will be a shocking swoon much lower which will take everyone by surprise.
Walter Zelezniak Jr profile picture
@FXPundit Excellent, good thing I moved half of my position to cash. At the end of this month, I will adjust as necessary.
FXPundit profile picture
@Walter Zelezniak Jr A good move because behind the scenes the Federal Reserve is draining liquidity from the market.
Morty C-137 profile picture
How did you determine what %SPY to move to Cash? Thanks for your articles.
Walter Zelezniak Jr profile picture
@Morty C-137 Thanks for reading my article and for asking a question. My approach to this problem is to reduce my position by half once the price closes below the 10 month moving average. If the 6 month moving average closes below the 10 month moving average I will reduce my position by half again. I will always keep the remaining amount, 25%, in the ETF because when stocks rally after finding their bottom I want to have some money allocated immediately to take advantage of the price advance. I have come to this formula thru trial and error. Its quite possible there are better ways to address this problem.
It's a plan, not written in stone, it may work, or not. It feels late, like my own actions.
CashFlow13 profile picture
When do you get back to fully invested?
Walter Zelezniak Jr profile picture
@CashFlow13 Thanks for reading my article and for posting a question. I will need to see SPY or another ETF to go into bullish alignment. We could be in for a choppy environment so I will most likely be cautious.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
iShares Core U.S. Aggregate Bond ETF
iShares Russell 2000 ETF
SPDR® S&P 500 ETF Trust

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.