My strategy will be using 20 vs. 50 ema crossovers to generate buy/sell signals.
These occur when two moving averages representing different trends criss-cross. For example, when the short-term average (20 ema) crosses BELOW a long-term one (50 ema), a SELL signal is generated. Conversely, when a short-term crosses ABOVE the long-term, a BUY signal is generated.
Buy/sell signals will be obvious at the cross-over points. Here's an example for the C Fund over the last year using the technical analysis chart option in Yahoo finance:
http://ichart.finance.yahoo.com/z?s=...m&p=e20,e50&a=
There were sell signals in late March and early October; buy signals came in late May and early November. The other funds work likewise.
When a sell signal is generated, I will move and divide that portion of my account among the accounts with a current buy status. When the C, S, and I funds have a sell status I will make a move to 100% G. I don't really know what to make of the F fund. It hasn't done much since share prices were established in June, 2003. It will probably be more of a factor in years when the market is down.
We'll see how it goes. Dang, if I had used this strategy in 2005, I would have gotten a 17.07% return instead of 5.30%.
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