Saturday, January 4, 2014

You Need A Plan For Next Inevitable Bear Market [SPDR S&P 500 ETF Trust] - Seeking Alpha

You Need A Plan For Next Inevitable Bear Market [SPDR S&P 500 ETF Trust] - Seeking Alpha

Here is another outstanding article by Chris Ciovacco.  He gives a very concise plan for knowing when to exit stocks in an organized fashion.  He presented charts to prove his point of paying attention to several moving averages for making decisions in a simple binary fashion.  He used 20-day and 40-day EMA lines along with 50-day and 200-day simple moving average lines along with the slope direction of the lines.  If they are all negative, you go to 100% bonds or cash.  The same rules also apply for coming off a bear market bottom.  This is a great plan to handle stock market tops and bottoms while protecting your principal and yet being in the market when gains can be made.

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