These Signals are long term trend following and watched by most market technicians. You may also sign up for our Free Weekly Commentary at the top right of our home page at www.seleznovcapitaladvisors.com
The Golden Cross or Death Cross occurs when the 50 Day Moving Average crosses the 200 Day Moving Average. When the 50 Day Moving Average is crossing from below the 200, it is called “Golden Cross”. When the 50 Day Moving average crosses from above to below the 200 Day Moving Average it is called the “Death Cross”. This system is a very long term trading system and is often very late on entry and exit. It does have a fairly good track record with many Indexes and other assets. It makes very few trades as compared to shorter term moving averages like the 50 Day Moving Average system. It can produce disastrous results if used for every stock index, ETF, or stock.
Other widely followed moving averages are the 50 day moving average and the 100 day moving average. Some money managers will use these moving averages with a shorter moving average and use the cross of the shorter moving average above or below the longer moving average to generate trading signals. The Wall Street Journal displays a 65 Day Moving Average in their charts. The goal of two moving averages and even 3 moving averages is to eliminate whipsaws that often occur with moving averages as a technical analysis indicator.
Why should you care about the signals produced with the 50-200 day moving average? There are so many people using the 50-200 day moving average, that we will often see extreme volatility in indexes when they cross both above and below the 50-200 day moving average.
The table below shows the current 50-200 day simple moving average condition on the 50 most actively traded ETF’s.
|Wisdom Tree Total Dividend||Stay Long||DTD|
|US Oil||Stay Short||USO|
|Steel Market Vector||Stay Short||SLX|
|SPDR Technology||Stay Short||XLK|
|SPDR S&P Homebuilders||Stay Short||XHB|
|SPDR Mid Cap||New Short||MDY|
|SPDR Metal & Mining||Stay Short||XME|
|SPDR Materials||Stay Short||XLB|
|SPDR International Real Estate||Stay Short||RWX|
|SPDR Industrial Sector||Stay Short||XLI|
|SPDR Healthcare||Stay Long||XLV|
|SPDR Gold Shares||Stay Long||GLD|
|SPDR Consumer Staples||Stay Long||XLP|
|SPDR Consumer Descretionary||Stay Long||XLY|
|Semiconductor Holders||Stay Short||SMH|
|S&P 500||Stay Short||SPY|
|RYDEX S&P 500 Equal Weight||Stay Short||RSP|
|PowerShares US Dollar Index||Stay Short||UUP|
|Pharmaceutical Holders||Stay Long||PPH|
|Oil Service Holders||Stay Short||OIH|
|NDX 100||Stay Long||QQQ.O|
|IShares United Kingdom||Stay Short||EWU|
|IShares Taiwan||Stay Short||EWT|
|IShares South Korea||Stay Long||EWY|
|IShares South Africa||Stay Short||EZA|
|IShares Silver||Stay Long||SLV|
|Ishares S&P Small Cap 600||Stay Long||IJR|
|IShares S&P 500 Growth||Stay Long||IVW|
|IShares Pacific ex Japan||Stay Short||EPP|
|IShares MSCI Japan||Stay Short||EWJ|
|IShares MSCI EAFE||Stay Short||EFA|
|IShares Mid Cap 400||Stay Long||IJH|
|IShares Mexico||Stay Short||EWW|
|IShares Latin America||Stay Short||ILF|
|IShares Hong Kong||Stay Short||EWH|
|IShares Germany||Stay Short||EWG|
|IShares Financial Sector||Stay Short||IYF|
|Ishares Emerging Markets||Stay Short||EEM|
|Ishares DJ Transportation||Stay Long||IYT|
|IShares DJ Real Estate||Stay Long||IYR|
|IShares Basic Materials||Stay Short||IYM|
|IShares Australia||Stay Short||EWA|
|IShares 25 Index||Stay Short||FXI|
|IShare Russell 2000||Stay Short||IWM|
|IPath India Index||Stay Short||INP|
|Internet Holders||Stay Long||HHH|
|Energy Select SPDR||Stay Long||XLE|
|Diamond Trust DOW||Stay Long||DIA|
|DB Commodity Index||Stay Long||DBC|
|Coal Power Shares||Stay Short||PKOL|
|BRIC IShares||Stay Short||BKF|
|Barclays High Yield Bond||Stay Short||JNK|
You should not trade any system trading plan without proper back testing and analysis of the trading characteristics of the index, stock or ETF you are trading.
These trading signals are provided courtesy of the website you are viewing. This information should not be used without research and advice from a financial professional.
Be aware that this condition can and will change any day in the future.
We monitor the 50-200 day moving cross system daily along with a number of other system trading plans.
There is No “Holy Grail” in trading systems. Do not use the 50-200 day SMA or any other system trading system without proper research on the asset.
For questions on rule based, system trading, contact