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Yeah- Wall Street keeps coming at ya one more time. In their never ending supply of useless advice, the latest is the death cross. If you aren’t moving a million dollars worth of stock daily or trading options (and quite frankly don’t most Americans have jobs??) then most of the stuff (analysis but basically glorified stuff) from big financial houses is useless.
Two weeks ago, the steady drone from technical analysts was that the markets were locked in a death spiral thanks to the “death cross”. The death cross being the S&P 500 moving average crossing below the 200 day moving average. Smaller investors were advised nothing could prevent lower stock prices.
Fast forward to today where the same technical analysts now see bullish action with the 50 day crossing back OVER the 200 day moving average. This (according to the intelligensia that is Wall Street) is a very bullish indicator and is known as the golden cross. It seems that the golden cross usurps the death cross and will lead to higher prices.
Doesn’t this seem like some high stakes bizarre card game where playing the bullish “golden cross” trumps the “death cross”. Magic card players would love to own the “golden cross” card for sure.
The point here has nothing to do with technical analysis or crosses in any way shape or form. The point is that investors dramatically need to ignore the noise that is Wall Street analysis and focus on their own situations and investment objectives.