PAY ATTENTION TO THE DEVELOPING PATTERN IN THE MOST POPULAR MARKET TIMING INDICATOR $SPY $QQQ $IWM $DJIA

Twitter
LinkedIn
Facebook

PAY ATTENTION TO THE DEVELOPING PATTERN IN THE MOST POPULAR MARKET TIMING INDICATOR $SPY $QQQ $IWM $DJIA

The most popular timing indicator in the U.S. stock market is the 200-day moving average.

The indicator derives its power not from anything innate in the stock market, but from the legions of investors who believe in it. It often becomes a self-fulfilling prophecy.

Investors ought to pay attention to a developing pattern. Let’s explore with a chart.

Chart

Please click here for an annotated chart of S&P 500 ETF SPY.  Similar patterns can be observed in the charts of Dow Jones Industrial Average DJIA,  Nasdaq 100 ETF QQQ,  and small-cap ETF IWM.  Please observe the following from the chart:

• The chart shows the overshoot the stock market experienced.

• The chart shows the retracement of the overshoot.

• As of this writing, the stock market is around the 200-day moving average.

• The foregoing three items constitute the developing pattern that investors ought to pay attention to.

• There is not enough historical precedence to know how this pattern resolves itself.

• The chart shows that following this timing indicator would have saved investors losses suffered during the financial bubble and the internet bubble.

• The chart shows numerous false signals this indicator has generated. Investors may want to note that believers in this indicator tend to not even acknowledge the false signals.

What to do now

Investors ought to bring more sophistication to their investing and use a more complex model. (We use the ZYX Global Multi Asset Allocation Model — click here for more information.) Furthermore, investors ought to guard against getting whipsawed by selling when the market falls below the 200-day moving average and buying when the market goes above the 200-day moving average…Read more at MarketWatch.

See also  AI HYPE MEETING REALITY, FED UNDER POLITICAL PRESSURE TO CUT RATES QUICKLY

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence