David Fabian | Mar 26, 2018 01:57AM ET
Everyone is going to be keying in on a certain trend line on Monday morning and how the market reacts around it. It doesn’t matter what type of investor you are – fundamental, technical, strategic, passive, active, whatever…. When push comes to shove, everyone wants to know if the 200-day simple moving average will hold or fold.
I wrote a lengthy post last year on the 200-day moving average that I think is very important to frame the context and history of this trend line. In it, I outline several key points for to investors consider with respect to a defense or breach of this area and what it may mean for changes to their portfolio.
Below are my observations of the current market and what I see on the chart as of March 25, 2018:
It’s more important to stick with your overarching investment strategy than it is to listen to your gut feeling or chase yourself in circles by trying to divine the next bear market. Make sure that any action taken in your portfolio from these technical cues will add value to your overall positioning rather than a simple knee-jerk reaction.
Disclosure : FMD Capital Management, its executives, and/or its clients June hold positions in the ETFs, mutual funds or any investment asset mentioned in this article. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities.
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