A surprising quantity of digital ink has been spilled over the GOLDEN CROSS, which is the media’s favourite elementary faculty technical indicator. With it, they present that the 50-day shifting common has crossed above the 200-day shifting common, and by golly, that has all the time meant, 100% of the time, {that a} new bull market has began. I’ve seen this announcement numerous occasions this week.
Nicely, I’d at the least prefer to level out that the straightforward shifting common did that. Nonetheless, I desire to look at the exponential shifting averages, thanks very a lot, and no such crossover has occurred, though it’s terrifyingly shut.
I’m not likely hung up on indicators anyway; you in all probability have found out since I seek advice from them hardly ever. However I at the least wish to lodge my grievance towards the common chatter that, by gum, the golden cross is an indication from God almighty that the bulls will get one more extension on their ceaseless government-funded bull market that began in early 2009.
