Wednesday, June 16, 2010

Pension plans (Fidelity)

Some good mutual funds you may want to consider. Many have turned bullish on intermediate and long term time frames. Most of them are now around 200 days moving average (SMA200) meaning that there is no clear long term trend. On intermediate time frames all of them look bullish. What to look for? Look to see how far away from SMA200 (red moving average) are they, the larger the amount on the upside, the better. Look how much are they above the downtrend line. Also look for DMI (is slightly positive for all of them).

If you are not sure how to trade use SMA200 as a timing method, buy when price moves above SMA200 and sell when it goes bellow. You may lose a bit here and there due to the "whip-saw" but you are going to avoid major crashes.

Some of them worked very well for me in the last 12 months, FSAVX and FLVCX being by far the best. I also have a sizable amount of money on a bond fund. The best Fidelity fund I found is FGMNX.  I rebalance every time I am getting buy/sell signals on intermediate time frames but you can get away with rebalancing only when long term trends become bearish or bullish.

I haven't check every single mutual fund available so I may have missed a good one but this a good start.


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