Following the S&P's Crossovers
It is hard to argue with the successes of long-term trend trading. While it is more complex than a buy-and-hold strategy, it is simple in its basic premise of following moving-average crossovers.
The graph of the 13- and 20-period monthly moving averages of the S&P 500 at the top of the chart provides a good illustration of the concept. When the 13-period average crossed below the 20-period average in early 2001, it marked the start of a multi-year decline, and when they crossed again in 2004, it confirmed the uptrend that began in 2003. Similarly, a bearish crossover in the first half of 2008 marked start of the severe selloff that year, and the bullish crossover in 2011 gave the all-clear sign....269 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
