The Average Investor's Blog

A software developer view on the markets

The Weekly Update

Posted by The Average Investor on Sep 4, 2011

September started with a bang on the downside, the S&P 500 down -3.69% in the two trading days, so far justifying the market neutral position established by most moving averages.

The ARMA strategy on the S&P 500 recorded August as its worst month in history (at least going back to 1950) – down -13.1%! There have been only two other occasions when it lost more than 10% in a single month. Still, it’s down about -3.3% for 2011, while the S&P 500 is down -6.65% over the same period of time.

There will be no weekly update next week, it’s vacation time! The numbers to watch for the Friday close are:

Index Crossover Close
S&P 500 $1,254.35
Nasdaq 100 $2,254.69
US REIT (VNQ) $57.82
Emerging Markets (EEM) $44.81

A close above these levels on Friday would mean that the moving average is below the price.

Happy trading!

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