System Trading Plan: Current 50 Day Moving Average Signals for April 15, 2011
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Seeking Alpha Analyst Since 2009
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 and tactical objective strategies.
SCA serves as the Sub-Advisor for the Equipointe Growth and Income Fund (EQGIX). Mark Seleznov is the Fund portfolio manager and was an organizer of Equipointe fund trust. He has experience in the creation of mutual fund and separately managed account strategies.
Mark was the Founder and Managing Partner of Trend Trader, a broker/dealer member NASD, SIPC . Trend Trader was founded in 1997. Mark still performs an active role with the firm.
A professional trader and money manager for more than 30 years, Mark Seleznov was a market maker on the Philadelphia Stock and Option Exchange as well as a retail registered representative and futures trader. Mark is a recognized expert in trading of equities and has conducted technical analysis seminars in addition to his TV appearances, newspaper and magazine contributions.
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There have been several whipsaws of the 50 day Moving Average Signal during the month. It is not my favorite Trading Plan, but you should watch it as many people use it.
We track 29 trading plans and provide Daily Signals for 53 Indexes.
We monitor trading signals for 53 Indexes at www.seleznovcapitaladvisors.com You may also sign up for our Free Weekly Commentary at the top right of our home page at www.seleznovcapitaladvisors.com
System Trader’s and Market Timing traders may use the 50 day Simple Moving Average as their trading plan. The 50 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 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 Wall Street Journal displays the 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 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 table shows the current 50 day simple moving average condition on the 50 most actively traded ETF’s.
| Security Name | Trend2 | Ticker |
| Barclays High Yield Bond | New Short | JNK |
| BRIC IShares | Stay Long | BKF |
| Coal Power Shares | Stay Long | PKOL |
| DB Commodity Index | Stay Long | DBC |
| Diamond Trust DOW | Stay Long | DIA |
| Energy Select SPDR | Stay Short | XLE |
| Internet Holders | Stay Short | HHH |
| IPath India Index | Stay Long | INP |
| IShare Russell 2000 | Stay Long | IWM |
| IShares 25 Index | Stay Long | FXI |
| IShares Australia | Stay Long | EWA |
| IShares Basic Materials | New Long | IYM |
| IShares DJ Real Estate | New Long | IYR |
| Ishares DJ Transportation | Stay Long | IYT |
| Ishares Emerging Markets | Stay Long | EEM |
| IShares Financial Sector | Stay Short | IYF |
| IShares Germany | Stay Long | EWG |
| IShares Hong Kong | Stay Long | EWH |
| IShares Latin America | Stay Long | ILF |
| IShares Mexico | Stay Long | EWW |
| IShares Mid Cap 400 | Stay Long | IJH |
| IShares MSCI EAFE | Stay Long | EFA |
| IShares MSCI Japan | Stay Short | EWJ |
| IShares Pacific ex Japan | Stay Long | EPP |
| IShares S&P 500 Growth | Stay Long | IVW |
| Ishares S&P Small Cap 600 | Stay Long | IJR |
| IShares Silver | Stay Long | SLV |
| IShares South Africa | Stay Long | EZA |
| IShares South Korea | Stay Long | EWY |
| IShares Taiwan | Stay Long | EWT |
| IShares United Kingdom | Stay Long | EWU |
| Oil Service Holders | Stay Short | OIH |
| Pharmaceutical Holders | Stay Long | PPH |
| PowerShares US Dollar Index | Stay Short | UUP |
| Russia | Stay Long | RSX |
| RYDEX S&P 500 Equal Weight | Stay Long | RSP |
| S&P 500 | Stay Short | SPY |
| Semiconductor Holders | Stay Short | SMH |
| SPDR Consumer Descretionary | Stay Long | XLY |
| SPDR Consumer Staples | Stay Long | XLP |
| SPDR Gold Shares | Stay Long | GLD |
| SPDR Healthcare | Stay Long | XLV |
| SPDR Industrial Sector | Stay Short | XLI |
| SPDR International Real Estate | Stay Long | RWX |
| SPDR Materials | Stay Short | XLB |
| SPDR Metal & Mining | Stay Long | XME |
| SPDR Mid Cap | Stay Long | MDY |
| SPDR S&P Homebuilders | Stay Long | XHB |
| SPDR Technology | Stay Short | XLK |
| Steel Market Vector | Stay Short | SLX |
| US Oil | Stay Long | USO |
| Wisdom Tree Total Dividend | Stay Long | DTD |
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 50 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 50 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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