From InvestorPlace
The Single Most Important Chart for Long-Term Investors
Buy-and-hold strategy has produced some astounding results for traders who followed this chart
By Sam Collins, InvestorPlace Chief Technical Analyst | Apr 1, 2014
Biotech stocks led Monday’s rally accompanied by small caps and other stocks that had been beaten down during the month of March. The Russell 2000 gained 1.8%, and the Nasdaq rose 1%, compared to smaller gains for the Dow industrials and S&P 500, both up 0.8%.
Buyers were encouraged by comments from new Federal Reserve Chair Janet Yellen, who indicated that the central bank would continue to support a low interest rate policy. She went on to say that the Fed is short of its employment and inflation goals, and that the economy will require “considerable support for some time.”
At Monday’s close, the Dow Jones Industrial Average was up 135 points at 16,458, the S&P 500 rose 15 points to 1,872, and the Nasdaq jumped 43 points to 4,199. The NYSE traded a total of 3.3 billion shares, and the Nasdaq crossed 2.1 billion. Advancers outpaced decliners by 3.1-to-1 on both major exchanges.
For the quarter, the Dow was down 0.7%, the S&P 500 gained 1.3%, and the Nasdaq rose 0.5%.
After a miserable January, February rebounded with solid gains, and March, though volatile, held its own. Thus, the 17-month moving average (MA) chart of the S&P 500 shows an advance for the year. The index is now 13% above its 17-month moving average, as compared to the end of January, when prices were just 11% above the MA.
For long-term investors, a buy-and-hold strategy has worked well since 1999, as long as they followed the guidance of this chart. Buying when the black price line crosses above the red moving average line and selling when the black line crosses below the red line has produced some astounding results.
Read more from InvestorPlace >>
The Single Most Important Chart for Long-Term Investors
Buy-and-hold strategy has produced some astounding results for traders who followed this chart
By Sam Collins, InvestorPlace Chief Technical Analyst | Apr 1, 2014
Biotech stocks led Monday’s rally accompanied by small caps and other stocks that had been beaten down during the month of March. The Russell 2000 gained 1.8%, and the Nasdaq rose 1%, compared to smaller gains for the Dow industrials and S&P 500, both up 0.8%.
Buyers were encouraged by comments from new Federal Reserve Chair Janet Yellen, who indicated that the central bank would continue to support a low interest rate policy. She went on to say that the Fed is short of its employment and inflation goals, and that the economy will require “considerable support for some time.”
At Monday’s close, the Dow Jones Industrial Average was up 135 points at 16,458, the S&P 500 rose 15 points to 1,872, and the Nasdaq jumped 43 points to 4,199. The NYSE traded a total of 3.3 billion shares, and the Nasdaq crossed 2.1 billion. Advancers outpaced decliners by 3.1-to-1 on both major exchanges.
For the quarter, the Dow was down 0.7%, the S&P 500 gained 1.3%, and the Nasdaq rose 0.5%.
After a miserable January, February rebounded with solid gains, and March, though volatile, held its own. Thus, the 17-month moving average (MA) chart of the S&P 500 shows an advance for the year. The index is now 13% above its 17-month moving average, as compared to the end of January, when prices were just 11% above the MA.
For long-term investors, a buy-and-hold strategy has worked well since 1999, as long as they followed the guidance of this chart. Buying when the black price line crosses above the red moving average line and selling when the black line crosses below the red line has produced some astounding results.
Read more from InvestorPlace >>
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