50 day moving avg

[guyschultz]

I have been trying to find the best no nonsense way to make good trades while listening and watching the news. looking at the patterns of the S&P and watching the dips and jumps from the 50 day moving avg. I just wanted to post this comment to see if I could get some feed back on my thoughts. in order of importance. 1. patterns last 3 months were great for me. the S&P just kept hopping like a bunny same height and lenght of hop. 2. 50 DAY MOVING AVG. look at the 50 day and when the last 2 bear market and the bull markets started it was when the 50 day moving avg was tested. 3 THE NEWS. Man oh Man how many times I made my moves based on what I heard on the radio. or t.v. important info. but now I try not to make moves based on it. but keep an keen ear on it

 

[Bullitt]

Glad to hear that you aren't going to base your trades off the TV pundits or newspaper headlines. As far as the 50 DMA as a timing tool, there may be months where you're not going to have enough IFT's due to whipsaws. I suggest using a monthly chart or weekly chart to base your decisions and things should smooth out for you. I also suggest not buying on a rise or break of the index over the 50 DMA, but instead buy when it's at an extreme low to the average and sell when it's at an extreme high to the average.