(REUTERS) yesterday:- Today's key chart Graphics are produced by Reuters. In a world of such dramatic fundamental policy and economic disruptions, financial chart patterns and trends may seem a little beside the point. But some of these remain important for investment funds and strategists who rely on market momentum signals. One of the most basic is how the stock market is trading relative to its long-term 200-day moving average. The S&P500 fell below this on March 11 and has lost more than 500 points since then as the tariff war ensued. Another closely watched momentum signal is when the shorter-term 50-day average moves above or below the 200-day line. And it's now about to slice below it for the first time in more than a year, a move ominously dubbed a "Death Cross". The last time this happened in 2022, the S&P500 lost almost 1,000 points over the subsequent six months.
BE hit again One of those days where the market kept offering me quite good points (+20ish on a few trades) but ended up coming back and hitting BE. Green on day though thanks to the 1st trade I posted.
Could happen, or it could not.---Don't know. One thing I do know is that if you look at your chart, it's very apparent that there are plentiful buyer opportunities on the way down, so it's acceptable to look long in a long-only market in my view.
Took a quick look all the way back to 1986 and when the 50 crossed below the 200 historically, there was not much follow through to the downside on the typical cross.
The good bank earnings would have juiced their stocks back in January are now barely moving them. Things feel heavy and nervous.
I suspect that using price and crossing the 200 may yield the same type of result and perhaps more quickly---Don't know
Key word, to me. I go long when long is least path of resistance. Same for going short. But you knew that.
I don't use MA's, other than for economic stats. Just posted article what others might be doing and thinking.
Government probe in to Semiconductors? No Tariff reprieve. “ U.S. announces probe into chip, electronics imports. The document confirms that chips and the electronics supply chain will not be exempt from Trump's tariff plans, even though they were granted exemptions from his "reciprocal tariffs" announced on Friday. The official document — which solicits public feedback on the investigation — reaffirms that chips and the electronics supply chain will still be subject to U.S. President Donald Trump's tariff plans, despite his Friday announcement that many of these items would be exempt from his "reciprocal tariffs." CNBC