Author: Roy Weisert, Weisert Investment Services
Covestor model: Top Ranked ProShares ETFs
I must say that 2011 was a very interesting and unique year. Although the first six months mostly followed a typical trending pattern, the last six months were challenging and frustrating. It was like being on a seesaw, going up and down but remaining in basically the same place.
The 2011 chart of the S&P 500 illustrates this. Around August you can see the big drop off. Notice that the 50 day moving average (MA) green line crosses below the 200 day moving average red line, signaling a bearish market. Also notice that at the end of September, the S&P 500 makes a new yearly low of around 1100, which usually signifies a continued bearish trend. However, the S&P 500 turns around and posts one of its best months in October, drops in November, then up again in December.
No one can predict the future, but I do think 2012 will be a good year and gains will be made as the 50 day MA next crosses above the 200 day MA, possibly in January.
