System 6 Buys SPY

Jan. 17, 2019 6:25 PM ET3 Comments
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Medium-Term Horizon, Long/Short Equity, Bonds

Contributor Since 2008

born 1947. retired economic geography academic. traded mutual funds with my retirement plan into an early retirement. Currently trying to make more than I spend mostly via ETF's. I'm a Dutch Kiwi Texan.

System 6 started with $100,000 on 7/7/15.  It was inspired by Gary Gordon's and Mebane Farber's use of the 10-month MA of the S&P 500 to generate buy and sell signals.  System 6 simply buys SPY at the close when the S&P 500 hits a 22-day high (intra-day), and sells SPY at the close, when the S&P hits a 65-day intra-day low.  It buys IEF when not in SPY.  The system sold SPY on 10/11/17 for $273.8, and bought 1206.1 shares of IEF at $110.42, for a total value of $121,120.  Today, the S&P hit a 22-day high.  The 15.55 price of IEF was $103.78, and there were three dividends for a total of $.641.  So the shares fetched $125,942.  The 15.58 price for SPY was $262.88, which bought 479 shares.  This was a good trade.

The 65-day low for the S&P is 2346.58, and that is true for more than 2 months.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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