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Overview: stock
charts don't lie, also past performance is no indication of future
performance. However, I believe the odds are better using charts
instead of analyzing fundamentals, especially when investing in
stock market indexes and market sector funds.
Trend and
Momentum - Momentum is most easily defined as the acceleration
rate of a stock's price. ETFs or stocks that are accelerating
rapidly often times continue that directional trend for sometime and
become tradable trends, and so momentum can be a valuable trading
tool in your arsenal.
(DIA) - 3 weeks ago it
traded in in negative territory (-2.9%), while Y-T-D it gained
+2.5%
The performance trend is NOT a buy or sell
signal, it just indicates which ETF performs better over a given
time period. Your portfolio should hold the best performing ETFs based
on the chart and may be adjusted from time to time depending on the
stock market performance. Frequent swapping of ETFs may result in
portfolio overall under performance. Should an ETF trend moves into
the negative territory, it's time to raise cash and should be on the
watch list.
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