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Ticker Voo ( snp 500) , has dividend
Good time to buy?
KgK one saysTicker Voo ( snp 500) , has dividend
Good time to buy?
Here's a chart of VOO with the 40 week/200 day EMA & the MCAD histogram only using the default settings.
Throughout the bullish cycle, whenever the market was above the 200 EMA, the MCAD histogram would simply be a momentum indicator of the price action slowing down or gaining pace.
But then, post-2022, whenever the slope of the histogram slants upward, it's basically a re-test of the 200 EMA and not a turnaround of the market itself, from bear to bull. So the key here is for the market to close above the 200 EMA and then, if the MCAD histogram either stays flat or starts to slant upwards, then a reversal may be in effect. Otherwise, it's highly likely that it's just a bear market rally.
What they don't realize is that high P/E ratios, limited dividends, and a focus on the tech laden companies like Amazon, Google, Tesla, Facebook, NVDIA, etc, makes it into a poor man's Nasdaq for the average 401K plan.
So if that's the case then why not just trade the Nasdaq and take advantage of all the tech buzz because we know that even when it explodes, it appears to resurrect itself again in a short time to repeat the cycle.
I've put together two charts for the years 2007 to 2010, possible the most brutal years for the markets since the 30s.
The first is a comparison between actively trading the QQQ, in which one buys when the price is higher than the 40 week (~200 days) exponential moving average at the start of the month and then sells it at the end of the month vs buying and holding.
The biggest difference is that the drawdown period with the traded account is lower than the buy n hold.
Then, my comparison is the high dividend low cap gain club of Altria, British American Tobacco, Rio Tinto, Carl Ichan Enterprises, and Annaly Capital
Where yes, the dividends help in that major dip ...
And so if you mix it up, 25% for the QQQ trading and 75% for buy n hold dividend portfolio, you get a pretty good result at the end of the bear market.