After the close on Friday June 12th. In this update post we are changing over from the 200 day ma, to look at the 40 Week moving average of at least a 20% annualized rate of growth. The reason is the 40 Week filters out some of the daily noise. It is more simple.
For the newbie readers out there, this means that the item is moving along a 40 Week moving average of a 20%, or greater, annualized growth.
And also for the new readers, this is pure, long term momentum trend following. This is not about fundamentals, personal opinions, forecasts, and projections. Investment Buy and Sell decisions are based on price action only.
The S&P 500 Index broke above the 40 Week, 20% growth rate, on the week of July 5th. There are several other Indexes that crossed over earlier, for example Aerospace and Defense, Real Estate, Utilities, Home Builders, Gold, Gold Miners.
Stock chart of the S&P 500 Index with the 40W MA 20% growth in the lower panel.