Beating the Averages
The major stock indices are finding their legs after six weeks of trading between the 50- and 200-day moving averages. As you can see in the chart below, the S&P 500 Index has pushed back above the 50-day average, which is a green light for a new uptrend in stocks.
My ideal trade setup was for the markets to fall below the 200-day average to re-initiate new equity exposure. But, as in life, the markets don’t always give us what we want. Right now, we are seeing stocks continue to strengthen. If you have positions in equity ETFs, then continue to ride the trend while it lasts.
After four-straight up days in the market, I don’t feel that this is the best point to add new exposure to stock ETFs. However, as I do each week, I will be watching the markets closely for an opportune entry point that I will communicate to my investment advisory subscribers.
If you want to join me for my next big buying opportunity in stocks, simply click here to sign up for my ETF Trader advisory service.
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
