http://www.cnbc.com/id/39651878/ Back in July, the Death Cross was all the rage. Last week, the market quietly stepped through the Golden Cross and hardly anybody noticed. TA is total BS lol. I guess in hindsight they noticed the Golden Cross. Why is it that these tea leaves readers always notice things and discuss these charts after it happens?
Exactly right, I heard them discussing this today as if it means the markets are going to jump even higher. It means absolutely nothing.
DB sees the patterns but not what goes into them, to repeat Fireplace from earlier (although he wasn't addressing DB). If you run an MA on this latest move, you'll see a very smooth line. But that line is constructed out of the extraordinary skepticism this latest move has been treated with. As a result, the market is doing precisely what it needs to: grinding it out slowly, day by day, so as to keep the bears just off balance enough to prevent there being a blowoff constructed out of their panic. Yesterday was almost a blowoff, but it backed off at the end, and today was just soggy. Keeps that doubt in the air.
Long term moving avg trading systems have performed good enough when compared to other loing term things like buy and hold. Moving avg systems are not always right. So what. For big piles of money concerned with risk they're solid and easy to implement.