“Market is simple but not easy”
A simple 10 day simple moving average crossover(10 SMA) (blue line on the chart above) almost always captures the majority of the trend.
The hard part is to believe this simple rule when market closes above 10 day SMA 2 days before election.
In the flip side, a day before brexit vote, market closed above 10 SMA and gave a 2% loss. In May 2016, SPY closed above 10 SMA 3 times and worked only 1 time. In Aug, Sep and Oct 2016, every close above 10 sma resulted in a loss.
This is the paradox of the market. How to use this simple rule to gain an edge in the market.
We in Wiz have found a way to be more invested when market gives the juicy trends and lose little when market is in waxing mode.
Wiz Investments is based on this fundamental framework of the market.
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