Algokid

Avoiding Bear Markets with Market Timing Model

BATS:SPY   SPDR S&P 500 ETF TRUST
The "SP 100 above 200" model( see here: https://www.tradingview.com/v/PZF8GX3a/) proved to be a excellent method to get in and most importantly get out of the market.

Another model that can be use by investors is the Market Timing Model. I like this model for the following reason

- Simple
- Requires very little homework
- Profitable
- Avoid bear markets
- Did I mentioned it was simple ?

Rules

- Open a monthly Chart of SPY or other ETFs
- place a 10 month SMA
- BUY if PRICE > SMA AT THE END OF THE MONTH
- SELL if PRICE < SMA AT THE END OF THE MONTH

That's it !! But here's the catch , you need to find a good selection of ETFs for this strategy to be successful. Start with the following : SPY , IEF , GLD .

This is perfect for long term investors, who don't have time to look at their portfolio every day, or week. I strongly recommend that you read the "IVY PORTFOLIO" by Mebane Faber for more detail. Hope this help.

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