8-Month SMA-Strategy: June’s last-week rebound averted a global trend reversal

Introduction

We are viewing a market over 8 months and then work with an 8-monthly Moving Average (SMA). Every end of the month we watch whether the market we are observing is trading above or below this SMA. If it is trading above, then we can stay invested or buy more. If the market is trading below then we propose to sell and – stay out.

As you can see, this simple strategy works in many different markets, especially the Asian stock markets

…read more
____________________________________________________________________________________________________________________________________________

8-Month SMA-Strategy: June’s last-week rebound averted a global trend reversal

June saw world stock markets riding a roller coaster. During the first three weeks most of the markets we monitored dipped substantially signalling a potential break of the upward trend ahead. It was then the Greek’s Parliament decision to accept government’s proposal on household measures that brought some relief to investors and allowed stocks around the world to soar in the last trading week.

World, Asia overall, US and German market defended their 8-Month SMA upward trends. Singapore, Hong Kong and China indices on the other hand didn’t rebound enough and broke the trend line. This unusual picture of divergence between local and regional indices can’t go on for long. Thus, July promises some excitement whether bulls or bears will win the upper hand on world stock markets.

Comments are closed.