# Visualizing the Tug of War Between Bulls And Bears

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Includes: ADSK, CBOE, FLIR, HD, PACT, SPY, SSCC, STZ, SWK, WIT
by: Kapitall

For today's post, we'll be focusing on the 50-day and 200-day moving average trends for all listed stocks with a market cap north of \$2.0B.

The concept is simple: If the 50-day moving average of a stock crosses above the 200-day moving average, it is considered a buy signal. This indicator is nicknamed the "Golden Cross", and represents a major shift from the bears to the bulls.

If, on the other hand, the 50-day moving average crosses below the 200-day moving average, it is considered a sell signal. This is called the "Death Cross" signal, and it represents a shift from the bulls to the bears.

To compile this histogram, we looked at the size of the difference between each stock's 50-day and 200-day moving averages, relative to the 200-day moving average.

For example, if a stock's 50-day moving average is \$11, and its 200-day moving average is \$10 (a bullish signal), the difference is expressed as (11-10)/10 = 10%. A large positive difference indicates a bullish signal, while a large negative difference indicates a bearish signal.

Our sample contains 1312 stocks. Here is the output:

As the histogram shows, there are 314 stocks with a difference between 0% and 5%. The vast majority of observations fall between -5% and +5%, which reflects the current tug-of-war between bulls and bears.

In our sample, there are 662 observations where the 50-day moving average falls below the 200-day moving average, and 650 observations where the reverse is true. Think of this as the score between bulls and bears.

Going by this indicator, bears lead the bulls 662-650. This is still a very close battle, but how long will it last?

A few ideas: We've listed 10 stocks where the difference between the 50-day and 200-day moving average is negligible. These are the stocks that are at a tipping point...

1. CBOE Holdings, Inc. (NASDAQ:CBOE): Current price at \$23.80. SMA50 and SMA200 at \$29.04.

2. FLIR Systems, Inc. (NASDAQ:FLIR): Current price at \$29.76. SMA50 and SMA200 at \$29.27.

3. hiSoft Technology International Ltd. (HSFT): Current price at \$11.42. SMA50 and SMA200 at \$11.30.

4. QEP Resources, Inc. (NYSE:QEP): Current price at \$33.97. SMA50 and SMA200 at \$31.46.

5. Smurfit-Stone Container Corp. (NYSE:SSCC): Current price at \$20.81. SMA50 and SMA200 at \$20.99.

6. Autodesk, Inc. (NASDAQ:ADSK): Current price at \$28.77. SMA50 and SMA200 at \$27.48.

7. The Home Depot, Inc. (NYSE:HD): Current price at \$28.68. SMA50 at \$29.96 and SMA200 at \$29.97.

8. Wipro Ltd. (NYSE:WIT): Current price at \$13.88. SMA50 at \$12.81 and SMA200 at \$12.82.

9. Stanley Black & Decker, Inc. (NYSE:SWK): Current price at \$57.88. SMA50 at \$54.39 and SMA200 at \$54.41.

10. Constellation Brands Inc. (NYSE:STZ): Current price at \$17.25. SMA50 at \$16.43 and SMA200 at \$16.44.

Disclosure: No positions