Sunday , 23 September 2018


Gold Is the Latest Asset To Join the Global “Death Cross” Parade!

The crossing of the 50-day moving average below the 200-day moving average has been long used a signal of trend change and…is known as the “death cross” and such death crosses are popping up in a large number of assets including, gold, silver, copper, bitcoin, China’s stocks, Germany’s DAX, Emerging Market stocks, bonds, and FX and, perhaps most ominously, the Global Most Systemically Import Banks (G-SIBs).

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1. Gold

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2. Silver’s Death Cross was triggered a few months back but has largely gone sideways since.

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3. Chinese Stocks have slumped since being hit by the Death Cross.

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4. Copper has given back its recent spike gains and formed a Death Cross as China growth expectations fade amid global trade war tensions.

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5. …Bitcoin plunged after suffering its death cross…

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6. Germany’s DAX suffered a Death Cross earlier in the year, rebounded, and now is about to suffer another as Trump’s tariff threats send it spiralling lower.

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7. Emerging Market stocks, bonds, and FX are all ‘Death Cross’-ing…

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8. Finally, and perhaps most ominously, there are the Global Most Systemically Import Banks (G-SIBs) – which just formed a Death Cross as they entered a bear market…

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But then again – why worry – Nasdaq is at a record high…

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Probably nothing to worry about, it’s only the global economy that is slowing dramatically…

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Discussing the Death Cross in a sensationalistic context is sexy and makes for good financial pornography and conversation over cocktails but that’s about all. Here’s why.

2. Are “Death Crosses” Useful Indicators On When To Buy & Sell?

The “death cross” occurs when the 50 daily moving average falls below the 200 daily moving average and is seen by mainstream financial media as a BIG bearish signal. It isn’t. It is actually more often a medium-long term bullish signal than a bearish signal. Below are all the S&P 500’s death crosses that have occurred over the past 20 years and they substantiate that it isn’t a useful indicator. Take a look.

3. Pervasive Death Crosses Are U.S. Stock Market Sell Signals

Those who are ignorant of financial history are doomed again to suffer its dreadful and costly consequences and today’s death crosses as seen in 7 major stock market indices are US stock market sell signals. Take note.
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