Due to a break of rising support, harvested 50% of the high yield funds on 11/17 at (2), in the chart below. (see post here). See update on these high yield funds below.
CLICK ON CHART TO ENLARGE
Bought the high yield funds on a break above the 50-ema at (1). Harvested half the positions on a break of support at (2) and am now harvesting the remainder of positions due to a break below the 50-ema.
Will be interesting to see if these funds find support at the April highs. Since 11/5, these funds have declined more than the 500 Index. In the past, this has not been a good sign for equities. Some day the high yields will break back above the 50-ema, when they do I will repurchase!
cK,
I haven’t found an “ideal” moving average that works all the time and in all asset classes. Per the high yields, I have used the 50-ema for well over a decade and I have found it to work very well for part of the portfolio. Looking at high yields and moving averages, to me the ideal plan is to use three different MA’s of different lenghts of time…short, medium and longer-term. Divide the portfolio into parts and use all three.
Hi Chris, I always wonder how to decide what moving average to use in terms of timeframe and ema vs sma when looking at charts. Is there any specific reason to use the 50 day ema with these? Thanks, cK