SPY Looks Shaky: We Follow The Trends


The trend in stocks remains bullish.

Taxes are going to rise in the US.

Tapering is not tightening. Debt purchases continue to be an accommodative monetary policy even with a monthly decline.

We take an agnostic view of the stock market. via Getty Images The S&P 500 tracks the performance of 500 large-cap companies listed on stock exchanges in the United States. Market participants closely follow the S&P 500 index because it represents the trend of the overall stock market.

The SPDR S&P 500 Trust ETF product (NYSEARCA: SPY ) is one of the most liquid and popular funds for investors as it tracks the S&P 500 index. The SPY holds a portfolio of five hundred stocks. At the $441.40 level at the end of last week, the SPY had $409.687 billion in assets under management and traded an average of over 64 million shares each day. SPY charges a 0.09% management fee and had an annual dividend of $5.57 per share or 1.26%, reflecting the blended yield of the stocks in the portfolio. Apple (NASDAQ: AAPL ) has the top market cap at the $2.4 trillion level. At the end of last week, SPY had a 6.16% exposure to AAPL.

We take an agnostic view of all markets by following trends via a proprietary algorithmic and systematic approach to trading and investing. We’re constantly long or short our portfolio components. SPY is one of the assets held in our portfolio. As of the close of business on Sept. 17, we were long SPY, but that could change. The trend in stocks remains bullish

The bullish trend in the SPY has been intact for more than a decade despite some significant speed bumps along the way. Source: CQG

The chart shows that liftoff occurred in March 2009. The stock market made a significant bottom following the 2008 global financial crisis where US housing melted down and Europe experienced a sovereign debt crisis. The SPY bottomed at $67.10 before blasting off to the upside, reaching its most recent peak at $454.05 in September 2021, a more than 575% gain. Corrections in late 2015 and early 2016, and 2018 were temporary, providing opportunities for investors and traders to buy the dip in stocks. The most significant correction occurred in 2020 as the global pandemic hit the stock market like a ton of bricks. The SPY fell from a new record high of $339.08 in February 2020 to a low of $218.26 in March, a decline of more than 35% in a matter of weeks. Since then, it has more than doubled in value over the past 18 months. Source: Barchart

The short-term chart dating back to March 2021 shows the bullish trend of higher lows and higher highs, with the latest peak on Sept. 2 at $454.05. As we have learned over the past years, the stock market tends to take the stairs higher and an elevator to the downside during corrections. Stocks have climbed a steep staircase, leading to […]

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