Greece, Spain, Portugal, has now spread over to the rest of Europe and the whole world.  If your trading plan is the 50 day moving average, you need to be paying attention.  Including today’s sell off, the majority of Indexes of the 53 Indexes in our Daily Trading Signal Service are now below their 50 day moving averages, today there were several more on Sell Signals.  We monitor trading signals for 53 Indexes at

System Trader’s and Market Timing traders may use the 50 day Simple Moving Average as their trading plan. The 50 day moving average is basic technical analysis. It is a good market timing trading plan for active trading in indexes and ETF’s that have trend following characteristics. It can produce disastrous results if used for every stock index, ETF, or stock.

Other widely followed moving averages are the 100 day moving average and the 200 day moving average. Some money managers will use these moving averages with a shorter moving average and use the cross of the shorter moving average above or below the longer moving average to generate trading signals. The Wall Street Journal displays the 65 day moving average in their charts.  The goal of two moving averages and even 3 moving averages is to eliminate whipsaws that often occur with moving averages as a technical analysis indicator.

Why should you care about the signals produced with the 50 day moving average? There are so many people using the 50 day moving average, that we will often see extreme volatility in indexes when they cross both above and below the 50 day moving average.

The below table shows the current 50 day simple moving average condition on the 50 most actively traded ETF’s. 

Security Name Trend2 Ticker
Barclays High Yield Bond New Short JNK
BRIC IShares Stay Short BKF
Coal Power Shares Stay Short PKOL
DB Commodity Index Stay Long DBC
Diamond Trust DOW Stay Long DIA
Energy Select SPDR Stay Long XLE
Internet Holders New Short HHH
IPath India Index New Short INP
IShare Russell 2000 Stay Long IWM
IShares 25 Index Stay Short FXI
IShares Australia Stay Short EWA
IShares Basic Materials New Short IYM
IShares DJ Real Estate Stay Long IYR
Ishares DJ Transportation Stay Long IYT
Ishares Emerging Markets New Short EEM
IShares Financial Sector Stay Long IYF
IShares Germany New Short EWG
IShares Hong Kong Stay Short EWH
IShares Latin America New Short ILF
IShares Mexico New Short EWW
IShares Mid Cap 400 Stay Long IJH
IShares MSCI EAFE Stay Short EFA
IShares MSCI Japan New Short EWJ
IShares Pacific ex Japan Stay Short EPP
IShares S&P 500 Growth New Short IVW
Ishares S&P Small Cap 600 Stay Long IJR
IShares Silver Stay Long SLV
IShares South Africa New Short EZA
IShares South Korea New Short EWY
IShares Taiwan New Short EWT
IShares United Kingdom Stay Short EWU
NDX 100 Stay Long QQQQ
Oil Service Holders Stay Short OIH
Pharmaceutical Holders Stay Short PPH
PowerShares US Dollar Index Stay Long UUP
Russia New Short RSX
RYDEX S&P 500 Equal Weight Stay Long RSP
S&P 500 Stay Long SPY
Semiconductor Holders Stay Long SMH
SPDR Consumer Descretionary Stay Long XLY
SPDR Consumer Staples New Short XLP
SPDR Gold Shares Stay Long GLD
SPDR Healthcare Stay Short XLV
SPDR Industrial Sector Stay Long XLI
SPDR International Real Estate New Short RWX
SPDR Materials New Short XLB
SPDR Metal & Mining Stay Short XME
SPDR Mid Cap Stay Long MDY
SPDR S&P Homebuilders Stay Long XHB
SPDR Technology New Short XLK
Steel Market Vector Stay Short SLX
US Oil New Short USO
Wisdom Tree Total Dividend Stay Long DTD


You should not trade any system trading plan without proper back testing and analysis of the trading characteristics of the index, stock or ETF you are trading. 

These trading signals are provided courtesy of the website you are viewing.  This information should not be used without research and advice from a financial professional.

Be aware that this condition can and will change any day in the future.

We monitor the 50 day moving average daily along with a number of other system trading plans.

There is No “Holy Grail” in trading systems. Do not use the 50 day SMA or any other system trading system without proper research on the asset.

For questions on rule based, system trading, contact