Archive for March, 2016

Buy Signal – SPY ( S&P 500 Index )

Thursday, March 31st, 2016

March 31, 2016

SPY finished the month at $ 205.5.  The 200 day moving average of SPY is $ 199.56  Therefore a SPY Buy signal has been generated.

Investors respecting the dictates of the Model should invest 100% of their investment funds in SPY.

Those who ignored the Sell Signal of December 31, 2015 have been vindicated as their $1,000,000 is now worth $1,008,093.

Those who respected the sell signal took a loss of $16,500 on the first trading day of  2016 and left the market by selling SPY. Their $1,000,000 is now worth $983,500.

I’ll keep tracking the results of those who follow the model and those who Buy and Hold.

Why the market has rebounded since the February 11 low has much to do with the FED’s announced adjustment of its plans to increase interest rates. You will recall I predicted that FED Chair  Yellen would eat the March increase and that has come to pass together with the hint that the FED has worries about its ability to generate an inflation circumstance which would allow for an increase any time soon..

With money cheap and the economy just  plugging along, there doesn’t seem to be any circumstance that would preclude dividend driven investments from making progress.

The next potential sell signal is April 30 with ” Play till May ” just over the horizon.

Richard Maurice Gore