Showing posts with label October 1987. Show all posts
Showing posts with label October 1987. Show all posts
Tuesday, August 28, 2012
September To Be "Nasty"?
If you are familiar with my blog, you probably know I advocate using the 200-day moving average as a buy/sell signal. Bad things tend to happen when the market is below its 200-day moving average. David Mcalvany compares today's markets to 1987 - low volume and high volatility. The big drop in 1987 came just after the market had sunk below its 200-day moving average (in October). Currently the markets are above their 200-day moving average, but I do not expect that to continue during September/October. When that happens, it could be a good sign to take some money off the table, if you haven't done so, by that time.
What would it take for you to reduce your equity portfolio?
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