I saw this online today. He says that the 50 week moving average is about to intersect with the 100 week moving average. I tried to plot it on a graph but I am not seeing it. I used 3 years instead of 2, but I still don't see it crossing anytime soon. It looks like they are running parallel to each other like they have for the last 3 years. Either I plotted it wrong or he is fear mongering.... ----- Not all "death crosses" are created equal. In a note to clients, Intermarket Strategy Ltd. Chief Executive and Strategist Ashraf Laidi points out that the S&P 500's 50-week moving average is falling below its 100-week moving average. This "statistically significant" death cross has only happened twice is the past two decades, Laidi points out. The first took place in 2001 and was followed by a 37 percent decline in the index, while the second pattern occurred in 2008 and preceded a 48 percent drop. ------- He posted a few graphs in the video with the DJI and the S and P, but doesn't bother illustrating the Death Cross. Considering that it was the foundation of his story, it seems like it would be the obvious thing to do. Am I missing something.......did I plot it wrong ? BTW, how do you post a pic that is in the thread, without a PNG like I did ? And how do you do a screen shot without posting your tabs at the top of the pic? http://finance.yahoo.com/news/p-500-death-cross-could-123626285.html ------
I didn't see the previous thread ( Wall Street Forum ) that was already started on this. But, I am still dinging the guy for not illustrating his story with a relevant graph.
What did I do wrong ? Was it because I used the 3 year average? The graph is plotted in weeks and I inserted 50 week and 100 week lines. What should I have done ? What site would you have used to plot the graph ?
You used the Barchart.com HI LOW moving average indicator which plots two moving averages from one indicator. You need to put two moving averages on the chart. I attached a chart from barchart.com for what you should have done.
Because it was profiled in the news yesterday. ----- the S&P 500's 50-week moving average is falling below its 100-week moving average. This "statistically significant" death cross has only happened twice in the past two decades, Laidi points out. The first took place in 2001 and was followed by a 37 percent decline in the index, while the second pattern occurred in 2008 and preceded a 48 percent drop. ---- So if it only happened twice in 20 years..and the massive drops that occurred in 2001 and 2008 followed it; that gets people's attention. http://www.fool.com/investing/gener...actors-will-drive.aspx?source=iedfolrf0000001