A stunning amount of digital ink has been spilled over the GOLDEN CROSS, which is the media’s favorite elementary school technical indicator. With it, they show that the 50 day moving average has crossed above the 200 day moving average, and by golly, that has always meant, 100% of the time, that a new bull market has started. I’ve seen this announcement countless times this week.
Well, I’d at least like to point out that, yeah, the SIMPLE moving average did that, but I prefer to watch the exponential moving averages, thank you very much, and no such crossover has taken place, although it’s terrifyingly close.
I’m not really hung up on indicators anyway, you probably have figured out, since I refer to them almost never. But I at least want to lodge my complaint against the universal chatter that, by gum, the golden cross is a sign from God almighty that the bulls are going to get yet another extension on their ceaseless government-funded bull market that started in early 2009.
