Market is still trending up

February 25th, 2012

The major market trend is still up based on the following chart. The way I determine the trend is that I use 3 exponential moving averages – EMA10, 20 and 40.  With a daily chart, when EMA10 crosses above EMA40, the underline equity will begin to move upward. When EMA 20 crosses above EMA40, it is my signal that this up trend is confirmed.

As the chart showed below, the previous EMA20 crossed above EMA40 happened on around Dec 19, 2011 and that was the signal for SPY moving upward. As long as the EMA20 stays above EMA40, the trend direction will remain. For down trend signal, the opposite is true with EMA20 crosses below EMA40.

I found this is the easy method to determine the direction of the major market using SPY ETF index fund. Of course there are many other ways to detect the direction such as Golden Cross (MA50 crosses MA200) but I prefer shorter periods for quicker reaction.

 

 

 

General

Core position for dividend investment

February 23rd, 2012

Here is the list of my core holding for my long term investment portfolio.

1. ABT

2. COP

3. CVX

4. ED

5. KMP

6. KO

7. MCD

8. MSFT

9. PM

10. SO

Dividend stocks

Investing strategies

February 14th, 2012

For investment, I do have my strategies for my own investing. My investment portfolios are basically divided into two categories:

1. Long Term and 2. Short Term.

For Long Term:

In my opinion, the best long term investment is to focus in dividend paying stocks, ETF index funds. This is how I invest my retirement account. I am looking for stocks and ETFs with moderate dividend payout and potential future growth. With annual dividend of 4% and potential of 3% growth, my goal is to achieve the total of 7% annual returns. The long term holding position rarely changes unless the underline holding decreases or stops paying dividend.

For Short Term:

I apply technical analysis such as market momentum and trends indicators such as moving averages, MACD, RSI etc. for my short term trading with my cash account. The duration of the holding can be days or few months depending on the technical signals. Trading instruments included stocks, ETFs, options and futures. My goal is to achieve 10% to 15% annual returns with my short term portfolio.

General

Fixed income using ETFs

February 13th, 2012

The following 5 ETFs will provide monthly fixed income with combined average of 4.5% annual returns:

AGG

IEF

HYG

LQD

TIP

Fixed income ETFs

Welcome to KeyStreet

January 30th, 2012

Welcome to KeyStreet, the financial investment information site that concentrates in stock equities investment and trading. It includes equities, options, ETFs, dividend income, fixed income, commodities, futures and Forex trading.

I am not a registered professional investment adviser or financial planner. Information provided here are my own opinion and should not be treated as advice or recommendation for your investment or trading. You should do your own analysis before investing.

I will discuss some of my own investment strategies for short term, long term and retirement investing in future posts. Thanks for dropping by.

Simon

General