Spy Buy Sell Hold Strategies for the S&P 500

The SPY is a popular ETF that tracks the S&P 500 index, making it a great tool for investors who want to gain exposure to the US stock market.

To develop a buy, sell, and hold strategy for the SPY, it's essential to understand its historical performance, including its average annual returns and volatility.

The SPY has historically provided average annual returns of around 10%, but it's also experienced significant downturns, including a 38% decline in 2008.

A key consideration when determining how often to buy, sell, or hold the SPY is its correlation with other assets, such as bonds and commodities.

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The Market Count 2X strategy outperformed the SPY with a cumulative return of 204.77% from July 11, 2013 through January 28, 2022.

It beat buy and hold in 2013, 2014, and 2017, with the strategy's cumulative return exceeding the SPY's return in those years.

However, the Market Count 2X strategy underperformed a little in 2015, 2016, and 2018, and was even in 2019.

But starting in 2020, the strategy greatly outperformed the SPY, taking advantage of the accelerated bull market.

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Using the golden cross and death cross combination as a market timing strategy can be a winning approach. The data shows that this strategy netted a 116% return over five years without factoring in cash returns.

Inconsistent use of a system can lead to poor performance, as seen in scenario 1 of the example. This investor generated 53% lower absolute returns over the last five years than scenario 2, and 36% lower returns than buying and holding.

Scenario 2, where the investor exclusively used crossovers as buy and sell signals, enjoyed better returns than buying and holding and did so in a shorter period of time. This potentially frees up capital for other investments or generates additional returns on free cash.

The performance of scenario 2 is a clear indication that using the golden cross and death cross combination can be a viable market timing strategy. Here's a comparison of the two scenarios:

By using the golden cross and death cross combination, investors can potentially outperform the market and generate higher returns in a shorter period of time.

You can use SPY to efficiently build diversified portfolios by gaining exposure to more than 500 companies in a single trade via the S&P 500.

Buy and hold SPY in a portfolio to potentially capture long-term growth.

As the world's most liquid ETF, SPY can help you get in and out of the market fast, easily, and at a relatively attractive cost.

With SPY, you can stay invested in the broad US equity market while you determine your next investment move.

You can use SPY as a liquid proxy for large-cap US stocks when making tactical allocation decisions.

Investing in SPY can help everyday investors manage risk in ways previously only accessible to institutional traders.

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The Market Count 3X Strategy is a powerful investment approach that leverages the Market Count system to generate superior returns. This strategy outperformed the QQQ seven out of ten years, with exceptional gains in four out of those six years.

The Market Count 3X Strategy uses the ProShares UltraPro QQQ ETF (TQQQ) which provides triple (3X) exposure compared to the QQQ. This ETF has excellent liquidity and tight spreads between the bid and ask.

The strategy's buy and sell signals follow the market's technical setup and institutional buying & selling footprints, gradually moving investors in and out of the market. This helps catch all major uptrends and avoid all major downtrends and bear markets.

The Market Count 3X Strategy excels in creating minimal drawdowns even with the use of high leverage. In five out of eight periods, the drawdowns were under 9.5%. It also outperformed the QQQ's drawdowns in 6 out of the 8 periods.

Here are some key statistics on the Market Count 3X Strategy's performance:

The Market Count 3X Strategy's exceptional gains and minimal drawdowns make it an attractive option for investors looking to generate superior returns while managing risk.

The Market Count 3X strategy is a powerful tool for investors, outperforming the QQQ in 7 out of 10 years. It delivered exceptional gains in four out of those six years, with a worst loss of only -9.2% in 2022.

In strong uptrending markets, this strategy provided outstanding returns, such as 77.6% in 2017, 73.9% in 2019, and 120.9% in 2020. It also excelled in creating minimal drawdowns, with five out of eight periods showing drawdowns under 9.5%.

Here are some key statistics on the Market Count 3X strategy's performance:

By using this strategy, investors can potentially outperform the QQQ and achieve superior returns while minimizing risk.

Let's test the effectiveness of the Golden Cross and Death Cross as buy and sell signals. We'll be looking at the last five years of performance, using simple moving averages.

A Golden Cross occurs when the 50-day moving average crosses over the 200-day moving average, triggering a buy on the next trading day at the open.

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There are four instances of a Golden Cross in the last five years.

In contrast, a Death Cross happens when the 50-day moving average crosses under the 200-day moving average, triggering a sell on the next trading day at the open.

We'll compare the performance of these signals to simply buying the SPY five years ago.

For the Golden Cross, we'll look at how it performed over the past five years.

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Most corrections lasted 1 to 2 months. The majority were intermediate declines of 10%-16%.

We looked at eight periods, including seven of the largest corrections and one bear market, to see how strategies performed and the drawdown incurred for each. The coronavirus bear market of Feb 19, 2020 through March 23, 2020, was the only true bear market on a closing basis.

The Market Count 2X strategy had a 10.2% decline during the coronavirus bear market, compared to 34.1% for SPY. This is a significant difference, especially considering the use of leverage in the strategy.

In most corrections, the drawdown was minimal, often less than 10%. For example, during Period 3 (July 20, 2015 through August 24, 2015), the SPY declined 10.9% while the strategy only declined 1.0%.

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Barchart Opinion provides traders with a comprehensive view of the market by analyzing up to 5 years of historical data through 13 different technical indicators. This analysis assigns a buy, sell, or hold value for each study.

The Barchart Opinion is not a recommendation to buy or sell a security, but rather a tool to aid in decision-making. Your decision should be based on your own due diligence.

Barchart Opinion uses a variety of popular trading systems to determine market trends. These systems include Trend Seeker, 20 Day Moving Average, 20 - 50 Day MA Crossover, and 20 - 200 Day MA Crossover.

The Trend Seeker system is currently indicating a "Buy" signal, with an average strength and weakest direction. This is one of the 13 technical indicators used by Barchart Opinion.

The 20 Day Moving Average is also indicating a "Buy" signal, with a soft strength and weakest direction. This is a short-term indicator that suggests a bullish trend.

Here is a summary of the current Barchart Opinion signals:

These signals can be used in conjunction with other market analysis tools to make informed investment decisions.

The Market Count 2X strategy uses a rules-based mechanical system that tracks the market using its technical makeup around key moving averages. This system is designed to automatically exit a market that's performing poorly.

The strategy combines this with leverage, using the ProShares Ultra S&P500 ETF (SSO) for 2X leverage to the S&P. SSO has excellent liquidity and tight spreads between the bid and ask.

The Market Count 2X strategy is tightly controlled to reduce volatility in downtrends and tough market conditions. Leverage generates maximum profits in strong uptrends.

SPDR S&P 500 ETF is a trending stock worth watching, according to 3 stock analysts on Stockchase who covered it in the last year.

The Market Count Strategy is a fascinating approach to investing that leverages technical analysis and institutional buying/selling footprints to make informed decisions. By following the market's technical setup and institutional activity, this strategy aims to catch major uptrends and avoid major downtrends and bear markets.

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One of the key benefits of the Market Count Strategy is its ability to reduce volatility and ensure full investment when the market is in a strong bull market. This is particularly evident in the Market Count 3X Strategy, which uses the ProShares UltraPro QQQ ETF (TQQQ) to provide triple exposure to the QQQ.

The Market Count 3X Strategy has outperformed the QQQ seven out of ten years, with exceptional gains in four out of those six years. Its worst loss was -9.2% in 2022, which is a relatively minimal drawdown considering the use of high leverage.

Here are some key statistics on the Market Count 3X Strategy's performance:

These numbers demonstrate the strategy's ability to deliver exceptional returns in strong uptrending markets. By leveraging technical analysis and institutional activity, the Market Count Strategy can help investors make more informed decisions and potentially achieve better outcomes.

In addition to its impressive returns, the Market Count 3X Strategy also excels in creating minimal drawdowns. In five out of eight periods, the strategy's drawdowns were under 9.5%, and it outperformed the QQQ's drawdowns in 6 out of the 8 periods.

The Market Count 2X Strategy, which uses the SSO ETF to provide double exposure to the SPY, also demonstrates the potential of the Market Count Strategy. This strategy has outperformed the SPY six out of ten years, with exceptional gains in two out of those six years. Its average number of trades per year is 33, and it has an average drawdown of under 10.3% in six out of eight periods.

Overall, the Market Count Strategy offers a unique approach to investing that combines technical analysis and institutional activity to make informed decisions. By leveraging this strategy, investors may be able to achieve better returns and minimize drawdowns.

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The QQQ, which represents the Nasdaq 100, had a phenomenal return of 368.95% from 2013 to 2021, outperforming the Nasdaq by a significant 84.25% margin.

The SPY, which tracks the S&P 500, closely mirrored the S&P 500's return, with both the SPY and the S&P 500 ending with a 163.77% return over the same period.

Our Market Count 3X strategy outperformed the QQQ with a 228.73% increase, resulting in a 1,212.84% return, while the Market Count 2X strategy had a 45.23% increase over QQQ buy and hold, for a 535.82% return.

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You can achieve impressive returns with a buy-and-hold strategy, as evidenced by the 99.96% return on a $10,000 investment in the SPY from January 27, 2020, to its current value.

This translates to an annual return of 14.85%, assuming you reinvest dividends. Doubling your money in five years is a remarkable feat, exceeding the long-term average returns of large-cap stocks.

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Investing in the QQQ from July 11, 2013, to January 28, 2022, yielded a 368.95% return, a phenomenal result for a stock index ETF.

Our two strategies, Market Count 3X and Market Count 2X, significantly outperformed the QQQ buy-and-hold strategy, with the Market Count 3X strategy delivering a 1,212.84% return.

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The QQQ returns were incredibly impressive, with a 368.95% return from 2013 to 2021.

This outperformed the Nasdaq with a 284.70% return, showing the QQQ's significant growth during this period.

The QQQ's performance was largely driven by the growth of the FANG stocks, which became mega-caps worth trillions of dollars.

This sent the Nasdaq 100 on an epic eleven-year long bull market, making the QQQ a standout performer.

In fact, the QQQ's returns were more than 80% higher than the Nasdaq's returns over this period.

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Drawdowns are a crucial aspect of any investment strategy, and Market Count 2X excels in keeping them minimal, even with the use of leverage.

In comparison to the QQQ, Market Count 2X had lower drawdowns every year, with some years showing significantly lower declines. The strategy's ability to limit drawdowns is a significant advantage.

During the 2020 coronavirus bear market, Market Count 2X only declined 16.2%, while the QQQ plummeted 28.1%. This is a stark contrast to the market's overall performance.

In five out of eight years, Market Count 2X's drawdowns were under 6.5%, demonstrating its ability to maintain stability in turbulent markets.

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A stock represents ownership in a company, giving you a claim on its assets and profits.

Stocks are often categorized into growth stocks and value stocks, with growth stocks focusing on long-term potential and value stocks emphasizing current dividend payments.

Investors can buy stocks through various means, including online brokerage accounts or through a financial advisor.

The SPDR S&P 500 ETF, or SPY, is the oldest and biggest ETF out there, with a slight difference in MER cost compared to VOO.

SPY is more diversified than QQQ, which mainly focuses on technology, biotech, and some consumer names.

SPY is 26% technology, 8% communications, making it a better choice for investors looking for a broader market exposure.

The VIX, or VXX-N, tracks the expectation of volatility over the next month, which can go up or down depending on market conditions.

A put spread on the S&P 500 can limit your downside, as seen in the example where the investor bought back the 500 put and was left long only the 599 outs.

Investors should consider contacting the ETF company itself for a tax opinion on which account is best to hold SPY in.

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Stock prices can fluctuate greatly, as seen in the example of SPDR S&P 500 ETF closing at $610.38 on 2025-02-20.

It's essential to keep track of stock prices daily to make informed investment decisions.

The stock price of SPDR S&P 500 ETF, or SPY-N, can be monitored by adding it to a watchlist to receive important alerts.

A single stock price is not a definitive indicator of a stock's performance, but it can be a crucial factor in a broader investment strategy.

On 2025-02-20, the SPDR S&P 500 ETF stock price closed at $610.38.

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A stock symbol, also known as a ticker symbol, is a unique code assigned to a publicly traded company.

It's usually a combination of letters, but sometimes numbers are used too. For example, the SPDR S&P 500 ETF has a symbol of SPY-N.

Stock symbols are used to identify a company's stock on stock exchanges like the NYSE Arca.

They can also be referred to by their exchange ticker, such as AMEX:SPY or SPY-N.

Stock symbols are displayed on stock market screens and are used by investors to quickly identify the company they're interested in.

They can be found on various platforms, including your watchlist.

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The Market Trend Advisory's strategies outperformed buy and hold in nearly every year, with the Market Count 3X strategy ending up with a 1,212.84% return.

Our Market Count 2X strategy, which uses a rules-based mechanical system to track the market, outperformed the SPY ETF six out of ten years, with exceptional gains in two out of those six years.

The strategy excels in creating minimal drawdowns, even with the use of leverage, with drawdowns under 10.3% in six out of eight periods.

During the coronavirus bear market, the drawdown was minimal compared to buy and hold, with a 10.2% decline vs. 34.1% for SPY.

The Market Count 3X strategy outperformed the QQQ seven out of ten years, with exceptional gains in four out of those six years.

This strategy excelled in creating minimal drawdowns even with the use of high leverage, with drawdowns under 9.5% in five out of eight periods.

During the 2020 coronavirus crash, the Market Count 3X strategy slightly outperformed with a 23.6% decline vs. 28.1% for the QQQ.

The Market Count 3X strategy provided outstanding returns in strong uptrending markets, with a 77.6% return in 2017, 73.9% in 2019, and 120.9% in 2020.

In contrast, the Market Count 2X strategy outperformed SPY six out of ten years, with exceptional gains in two out of those six years.

This strategy excelled in creating minimal drawdowns even with the use of leverage, with drawdowns under 10.3% in six out of eight periods.

The Market Count 2X strategy's cumulative return was 204.77% vs. 163.84% for the SPY, making it a top performer among the strategies.

Its worst loss was -2.0% in one period and -6.1% in another, which is significantly less than the SPY's decline of 34.1% during the coronavirus bear market.

Let's take a closer look at the QQQ results. Buying and holding the QQQ ETF has its own set of performance metrics.

We'll be comparing the Market Trend Advisory's results to this approach. It's worth noting that reviewing cumulative performance is instructive, but we're focusing on annual performance and specific period drawdowns vs. the QQQ.

Annual performance is a key metric to consider. The Market Trend Advisory's results will be compared to buying and holding the QQQ to see how they stack up.

The specific period drawdowns will also be examined to see how the two approaches compare.

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Our strategy uses a rules-based mechanical system to track the market, which is a simple yet powerful approach to timing the market.

The Market Count system is designed to automatically exit a market that's performing poorly, avoiding major corrections and bear markets.

It uses the S&P 500's daily closes in conjunction with its technical makeup around key moving averages, along with institutional buying and selling signals.

Leverage is used to amplify gains, with the ProShares Ultra S&P500 ETF (SSO) providing 2X leverage to the S&P 500.

SSO has excellent liquidity and tight spreads between the bid and ask, which helps control volatility in downtrends.

The system tightly controls leverage to reduce volatility in tough market conditions, but generates maximum profits in strong uptrends.