All Ordinaries | SELL OR BUY?
Firstly, if you want to buy ASX 200 and be exposed to its volatility, you can simply buy (Asx: STW) Exchange Traded Funds. This fund invests on top 200 companies and peform pretty much the same as Asx: XAO would perform.
Other similar funds you can find as following:
The great thing of investing in these funds you get distributions units, just like a dividends from the companies the fund invests.
Now back to what we are talking before, once again we are seeing All ordinaries crossing SMA followed by EMA almost crossing SMA towards upside.
We are reducing our positions prior Friday possible sell off.
Members are asking us whether it is going to fall or keep going up tomorrow.
We don’t know! We cannot know! And what we think is irrelevant as we don’t have a crystal ball.
SO, WHAT DO WE DO?
We can only work with our strategy and use the KPI’s of BGS 20 Strategy to make consistent profit.
Our BGS 20 strategy uses moving averages combined with support, resistance, volumes and market sentiment to best estimate or conclude our entries in the market.
Such as strategy works differently when an investor is looking at applying at a long term investment, than when a investor is using at short term.
Short term, we would say it is now time to sell as the market has touched the green line, or so called resistance.
Long term, it is a perfect entry as EMA and all ordinaries are crossing SMA, however this strategy is not very efficient if the market moves sideways.
We are optimist and we are expecting the market to reach it’s all times high some time over the next 6 to 12 months if nothing catastrophic happens .
Because we have seen the Australian stock market moving sideways since June, we have not indication of any short term change of this pattern.