signal of trend change and…is known as the "death cross" and such death crosses are popping up in a large number of assets including, gold, silver, copper, bitcoin, China's stocks, Germany's DAX, Emerging Market stocks, bonds, and FX and, perhaps most ominously, the Global Most Systemically Import Banks (G-SIBs).
Discussing the Death Cross in a sensationalistic context is sexy and makes for good financial pornography and conversation over cocktails but that's about all. Here's why.
2. Are ?Death Crosses? Useful Indicators On When To Buy & Sell?
The ?death cross? occurs when the 50 daily moving average falls below the 200 daily moving average and is seen by mainstream financial media as a BIG bearish signal. It isn't. It is actually more often a medium-long term bullish signal than a bearish signal. Below are all the S&P 500's death crosses that have occurred over the past 20 years and they substantiate that it isn't a useful indicator. Take a look.
3. Pervasive Death Crosses Are U.S. Stock Market Sell Signals
Those who are ignorant of financial history are doomed again to suffer its dreadful and costly consequences and today's death crosses as seen in 7 major stock market indices are US stock market sell signals. Take note.
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