March 1- SPY persists as a Buy

March 1, 2018


I have to admit, as January turned into February with SPY still a BUY, it looked as though SPY’s 200 day moving average would never hold for the entire month and that investors would be mightily tempted to beat the crowd. to the exits.  And , what followed, explains why there have been only 6 sell signals of the month end SPY model since January 1, 2000.

SPY ended February at $ 271.65.

SPY’s 200 day moving average is $ $255.62

By definition, SPY remains on a buy signal.

What this means for me.  I can stay invested in SPY, or take on risk beyond “market ” risk and invest in sector ETFs …” Sector risk”  or even purchase individual equities ” Specific  risk “.  All it means to me is that the market is in an uptrend and you are a trend follower, as I am, you follow the trend to the end.

What this means for you.  I don’t have a license to give advice. So, I won’t , except to say , if I were inclined to start investing in SPY, I would do it incrementally over time, understanding that if a sell signal interrupted my program I would gladly take a small loss rather than hop onboard for a 55% drawdown which is what happened during the last recession.  My goal is to make a reasonable amount of money or , at worst , take a small loss with the knowledge I have protected my capital to play again at the next buy signal.


Richard Maurice Gore




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