DOW dropped more than 100 points. So what shoud we do ?

DOW had one day dropped of 100.90 points and S&P500 gave up 12.43 points on Jan 15. Given the DOW had reached the highest level since Oct 2008, its momentum is still trending upward and it is not a big factor at the point we should worry yet as it showed on the weekly moving average charts.

As for my simulated Traders Pick portfolio, the daily chart for FCX showed sign of weakness but it did not reach the selling point yet (as showed in the chart). Once the MA-4 touches the MA-18, I will sell it and look for another opportunity to get back in.

I found some of the ETFs can be traded using daily charts with MA-4, MA-18 and MA-39 moving averages and crossover signals. These ETFs tend to stay in one direction longer. Using these moving averages and crossover signals really work well for these selected ETFs, but there are some ETFs, actually more ETFs don't work well by using these daily signals.

ETFs that I found which work well from the TradeStation platform back-testing are:

1. EWY
2. EWZ
3. FCX
4. ILF

Signals will not work for ETFs are:
1. SPY
2. QQQQ
3. GLD
4. XLK

I will show some results of the back-testing in the next few threads.