30 & 50 Week Moving Average - 'BUY' Signal on Several Developed Markets
Last May, we highlighted that both the 30-week moving average and the Coppock Indicator had given 'BUY' signals at the end of April for several markets. More 'BUY' signals using these indicators were given for several other markets throughout May.
In late August, the more conservative 30 & 50-Week moving average indicator gave a 'BUY' signal for the Japanese market at the close of business on Friday, 27th August. Several more developed markets have now given 'BUY' signals on the 30 & 50-Week moving average indicator as at 11th September 2009 including the US, UK and Irish markets (we don't track all markets).
For a 'BUY' signal to be given on this indicator, the 30-week moving average must cross the 50-week moving average while rising. Since 1970, the indicator has been effective in signalling further upside over the medium term in circa two out of three occassions.
Members should study the historical data available in the spreadsheets at the members section of the web site. Often, when a 'BUY' signal has been given the market backs and fills for a while. You can check this for yourself by looking through the historical data. We have taught this indicator at the 1-day seminar since early 2008 following its write up in Mark Shipman's very useful book 'Big Money, Little Effort'.
Rory Gillen
The InvestR Centre
11th Sept 2009