Signals/Monthly Faber Crossover

Monthly Faber Crossover

On the last trading day of the month, SPY closes above its 10-month simple moving average after having been below it the previous month. This is Meb Faber's classic tactical asset allocation signal from his 2007 paper — one of the most academically vetted long-term trend-following triggers. The forward base rates are exceptional: 91% positive at 12 months with an average return of +12.2% since 1993.

Rule
Last trading day of month. Previous month-end close < SMA(10) of monthly closes. Current month-end close > SMA(10) of monthly closes.
23 occurrencesData: 1993-02-022026-04-17Cooldown: 20 trading daysLast trigger: 2025-05-30

Forward Returns

Horizon% PositiveAvg ReturnMedianBestWorstN
1w65%+0.59%+1.01%+4.94%-4.30%23
1m70%+0.42%+1.36%+7.31%-11.41%23
3m78%+3.35%+1.87%+15.28%-15.59%23
6m87%+7.54%+7.34%+22.41%-25.14%23
9m87%+10.42%+10.67%+28.02%-21.94%23
12m91%+12.22%+12.46%+38.03%-24.28%22

SPY with Trigger Markers

Signal trigger · log scale

Historical Occurrences

DateSPY1w1m3m6m9m12m
2025-05-30$589.39+1.65%+4.79%+9.44%+15.95%+15.43%
2023-11-30$456.40+0.40%+3.56%+12.25%+15.64%+20.96%+32.26%
2023-01-31$406.48+2.14%-2.13%+1.07%+10.74%+2.88%+20.35%
2022-11-30$407.68-3.56%-6.19%-0.86%+4.96%+10.67%+12.61%
2022-03-31$451.64-0.64%-8.23%-15.59%-20.91%-15.32%-9.01%
2020-05-29$304.32+4.94%+0.05%+14.46%+19.17%+28.02%+38.03%
2019-06-28$293.00+1.30%+2.63%+0.82%+10.19%-10.70%+3.91%
2019-02-28$278.68-1.32%+1.36%+0.13%+3.66%+12.70%+6.31%
2018-11-30$275.65-4.20%-11.41%+0.61%+2.65%+6.67%+12.30%
2016-03-31$205.52-0.76%+0.39%+0.55%+5.41%+9.19%+14.97%
2015-10-30$207.93+1.01%+1.32%-8.55%-0.85%+3.66%+2.22%
2012-01-31$131.32+2.64%+4.88%+7.17%+4.87%+7.64%+15.17%
2010-09-30$114.13+1.54%+3.82%+10.16%+16.17%+15.63%+1.68%
2010-07-30$110.27+1.92%-4.50%+7.37%+15.82%+23.72%+17.28%
2009-06-30$91.95-4.30%+7.31%+15.28%+22.41%+27.24%+12.26%
2005-05-31$119.48+0.54%+0.29%+1.85%+5.65%+8.28%+6.72%
2004-10-29$113.20+3.60%+4.14%+4.38%+2.83%+9.23%+5.83%
2003-04-30$91.91+1.61%+5.48%+7.89%+14.29%+23.47%+21.67%
2002-03-28$114.52-1.60%-6.69%-13.18%-25.14%-21.94%-24.28%
1999-10-29$137.00+0.64%+1.66%+1.87%+7.34%+5.07%+1.66%
1998-10-30$110.00+3.75%+6.94%+14.66%+21.25%+20.40%+23.24%
1995-01-31$47.09+2.57%+3.33%+9.49%+19.07%+24.38%+35.23%
1994-08-31$47.67-0.36%-3.13%-4.34%+2.33%+12.33%+18.36%

Forward returns are computed from SPY closing prices. Cells showing “—” indicate the horizon has not yet elapsed for that trigger.