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System Trading Plan: Current 50 Day Moving Average Signals for July 14, 2010

|Includes: BFK, BKF, DBC, DIA, DTN, EEM, EFA, EPP, EWA, EWG, EWH, EWJ, EWT, EWU, EWW, EWY, EZA, FXI, GLD, HHH, IJH, IJR, ILF, INP, IVW, IWM, IYF, IYR, IYT, JNK, MDY, OIH, PKOL, PPH, QQQ, RSP, RSX, RWX, SLV, SLX, SMH, SPDR S&P 500 Trust ETF (SPY), USO, UUP, XHB, XLB, XLE, XLI, XLK, XLP, XLV, XLY, XME
More Indexes are moving back above their 50 day moving average. This should start bringing some technical traders back to the long side of the market. I expect some short covering rallies too.
We track 29 trading plans and provide Daily Signals for 53 Indexes in our Daily Trading Signal Service  We monitor trading signals for 53 Indexes 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 Stay Long JNK
BRIC IShares Stay Long BKF
Coal Power Shares Stay Long PKOL
DB Commodity Index Stay Short DBC
Diamond Trust DOW New Long DIA
Energy Select SPDR Stay Short XLE
Internet Holders New Long HHH
IPath India Index Stay Long INP
IShare Russell 2000 Stay Short IWM
IShares 25 Index Stay Long FXI
IShares Australia New Long EWA
IShares Basic Materials New Long IYM
IShares DJ Real Estate New Long IYR
Ishares DJ Transportation Stay Short IYT
Ishares Emerging Markets Stay Long EEM
IShares Financial Sector New Long IYF
IShares Germany Stay Long EWG
IShares Hong Kong Stay Long EWH
IShares Latin America Stay Long ILF
IShares Mexico New Long EWW
IShares Mid Cap 400 Stay Short 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 Short IVW
Ishares S&P Small Cap 600 Stay Short IJR
IShares Silver Stay Short SLV
IShares South Africa Stay Long EZA
IShares South Korea Stay Long EWY
IShares Taiwan Stay Long EWT
IShares United Kingdom Stay Long EWU
NDX 100 Stay Short QQQQ
Oil Service Holders New Long OIH
Pharmaceutical Holders Stay Long PPH
PowerShares US Dollar Index Stay Short UUP
Russia New Long RSX
RYDEX S&P 500 Equal Weight Stay Short RSP
S&P 500 Stay Short SPY
Semiconductor Holders Stay Long SMH
SPDR Consumer Descretionary Stay Short XLY
SPDR Consumer Staples New Long XLP
SPDR Gold Shares Stay Short GLD
SPDR Healthcare Stay Short XLV
SPDR Industrial Sector Stay Short XLI
SPDR International Real Estate Stay Long RWX
SPDR Materials New Long XLB
SPDR Metal & Mining Stay Short XME
SPDR Mid Cap Stay Short MDY
SPDR S&P Homebuilders Stay Short XHB
SPDR Technology New Long XLK
Steel Market Vector Stay Short SLX
US Oil New Long USO
Wisdom Tree Total Dividend New 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