The USD Index just made its first “Golden Cross” in more than 1 year which is a short-medium term bullish sign for the USD…Historically when that has happened the USD usually continued to go higher in the next 2-3 months.
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A Golden Cross is when the market’s 50 daily moving average crosses above its 200 daily moving average as illustrated above and, as you can see in the table below, when that happens the U.S. Dollar Index’s forward returns on a 2-3 month basis are mostly bullish.
Click here to download the file in Excel.
The U.S. Dollar will probably head a little higher in the next 2-3 months before topping. Remember the adage “strength begets more strength”.
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History is testament that there exists monumental probability (76% to 100%) that 2014-2016 will witness impressive gains for Gold, Silver and Precious Metal Equities…across the board. Below are charts of 8 different forms of precious metals assets that show that Golden Crosses are a fait accompli or are about to experience imminent completion thus heralding an immediate new Bull Market and that the forth-coming secular bull markets in all forms of precious metals may well far surpass the forecasts herein stated. The focus of the following analysis is to prove the predictable accuracy and timing of the Golden Cross.
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.
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.
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