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- Last Update: 18 January 2019, 11:15
I have marked the monthly MACD buy and sell signals on the S&P 500 index chart using green (for buys) and red (for sales) vertical dotted lines. For trading purposes investors should use the etf equivalent symbol SPY. I've backtested this for the past 25 years and it has kept an investor on the right side of the markets, insofar as the S&P 500 index is concerned. There are not a lot of signals but for long-term accounts like 401K's , burned in the big downturns , this is perhaps a good timing tool to follow. I don't personally believe you should hold index funds when the MACD is on a monthly sell signal. As for individual stocks you will find that few will benefit you when the market is on a monthly MACD sell. Until the monthly MACD returns to a buy signal you should certainly put stops on any individual securities owned, in my opinion, to avoid losing hard to come by gains.
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