The Average Investor's Blog

A software developer view on the markets

The Weekly Update

Posted by The Average Investor on Oct 30, 2011

It has been awhile since we had long positions to follow on the 20-week moving average, but here we are, with a huge single week gain, thanks to the jump after Europe promised to throw more money on a problem created by too much money … Amazing how these things work in “real” life (punt intended), isn’t it.

Helped by the huge move on Thursday, the S&P 500 ended up above its 200-day moving average.

Moving Average Position Since Gain
200 Day Long (SPY) 2011-10-27 -0.00%
20 Week Long (SPY) 2011-10-21 3.73%
10 Month Out (IEF) 2011-08-31 -0.83%

This is the first time I am using the above format, so some clarification is appropriate. First, from now on, I will be following only the S&P 500. For the long MA positions, I will be using the SPY to compute the returns, while for the neutral positions, I will be using the returns on IEF, the iShares Lehman 7-10 Year Treasury Bond ETF.

The format of the table on the right of the main article has also change. It will reflect the positions on S&P 500 based on various indicators.

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