If we view a chart of ETF (VT) stocks from the Vanguard Total World Stock Index Fund, we can see that the stocks are now trading firmly below the ETF’s major moving averages. Earlier profit taking in VT was to be expected given the strong gains the fund has made over the past 24 or so months. Given the double top reversal pattern that has recently played out in VT as well as the resulting major overhead resistance now, we recommend investors continue to look at VT from the long side but more from a to-side perspective. short term. . From our perspective, we would need to see the stock price clearing the 30-day moving average ($101.18) convincingly before we consider putting long deltas to work here.
Before we get into why we’re still bullish on this ETF, let’s touch on a bit about the advantages of short-term investing over its long-term counterpart. As noted, the main reason why the short term (once we get to a bottom) is more advantageous right now is the overhead resistance now prevailing on the technical chart. Here are also other points that help the short-term investor in special circumstances.
New investors can cut their teeth quickly in this sector by trading more short-term. Multiple decisions over shorter time frames bring much-needed experience to the table that would otherwise not have been gained.
When it comes to a company in this sector, short-term investing allows the investor to adjust their respective position when something has fundamentally or technically changed. On the contrary, long-term holds are rarely so closely monitored, which means that on occasion, temporary withdrawals can turn into significant paper losses over time.
Suffice it to say, here’s why we think VT remains a strong near-term vehicle once the ETF returns to bullish mode.
So, to sum up, VT’s dividend, liquidity, growth in assets under management, and low volatility all play into the bullish case for this particular fund. However, given the current evolution of ETF technicalities, we believe that investing in this vehicle for shorter periods will pay better dividends for some time to come. We look forward to continued coverage.