Public trading strategy
Fed rate hike fears are overblown — buy the broad market dip
Thesis
News highlights that central bank rate hikes don't necessarily kill a bull market, as stocks often price in the inflationary growth that causes the hikes. This suggests buying the dip or holding broad market index ETFs is a strong play. We can capture this resilient uptrend by buying the S&P 500. A simple rule of buying when the market's recent upward trend is intact gives us a low-stress way to ride it.
Strategy approach
Build a rule-based strategy that enters long SPY on D1 when the 50-day simple moving average is above the 200-day simple moving average (Golden Cross) and RSI(14) is between 40 and 60. Exit if SPY closes below the 50-day SMA. Hold max 30 days.
Markets and timeframes
SPYD1