This is a link to SPY, the S&P 500 ETF. I have also shown a chart below with a 144-day average line. Double-click on the chart to expand it. This is another indicator investors could use for knowing when to be in or out of the stock market. Notice that between August and October of 2011 SPY was below the 144 day-line for weeks, and the slope of the 144-day line pointed downward during that time also. This period coincided with a terrible Congressional battle over the debt ceiling, and our bond rating was also reduced at that time. There was higher than normal selling volume at the start of this downturn, too. It is better to be safe sometimes and just accumulate cash during those periods.
No comments:
Post a Comment