Van Beek's blog
Do you want to get an immediate warning when the trend for the S&P 500 starts to go down? Do you want to know when to sell your S&P 500 index funds?
The long-term trend for the S&P 500 is pointing up since January 30, 2012. At that moment the S&P 500 stood at 1,313. Now, more than 3 years later, the gains are over 50%.
How much higher will it go before the trend will turn? Nobody knows. History shows that it could easily take another 2 years and another 30% gain. It could also be this month.
2015 started with an eventful January. The continued decline of the Euro versus the US Dollar had a major impact on the stock markets around the world.
During January, the German DAX gained 9.1% and the S&P 500 lost 3.1%.
However, this is before taking into account the impact of currency price developments.
Measured in Euros, the German DAX gained 9.1% during January. However, measured in US Dollars the DAX only gained 1.7% during January.
Measured in US Dollars the S&P 500 lost 3.1% during the month. However, measured in Euros, the S&P 500 gained 3.9%.
Stock Market Profits in Dollars and Euros
European investors gained during January, regardless if they invested at home or in the US markets.
Following the requests from many of our visitors, we are launching now the S&P 500 Trend Signal Email Alert.
If you are just interested in getting an email alert when the long-term trend of the S&P 500 index changes direction, click here.
When you sign up for this email alert service, you will get immediately an email from us when the MATI signal indicates a shift in the long-term trend direction.
This may happen only once or twice in the few years. We are talking long-term trends here.
On August 8th, our MA200S trend signal for the German DAX index turned down. The MA200S is not a signal that we normally publish. However, since I am acting on it myself, I think I owe you this type of information for transparency reasons.
This movement in the DAX and the MA200S trend signal is a typical example of whip-sawing.
This happens. The signal indicated that the long-term trend is moving down. And then the price action reverses and the signal turns back up again within a matter of weeks or months.
There is Trend Following and there is Trend Investing. There are similarities and there are differences. Sometimes one is better and sometimes the other one is more feasible.
In general Trend Following the financial markets has the following characteristics: