Posted on 05/26/2010 8:14:38 AM PDT by blam
Dear Commodities Investors, We Have Achieved Death Cross
Joe Weisenthal
May 26, 2010, 5:36 AM
Just a quick chart here for your. The Reuters/Jefferies CRB Index (commodities) index has hit death cross, by which we mean the 50-day moving average has fallen below the 200-day one. For some this is a huge negative sign, though at this point bearishness seems rampant across the space. We told you back on the 19th that this was about to happen.
[snip]
(Excerpt) Read more at businessinsider.com ...
It’s a funny looking recovery.
What exactly is a death cross and should I be happy or scared?
bttt
Sounds painful........... /kidding
Looks like a swastika to me.
Aruuuugha Aruuuugha Aruuuugha
dive dive dive
... oh wait. Never mind.
Never cross the streams!
Think my stimulus is wearing off. Actually, I never felt that hot to begin with.
"dive dive dive"
Be careful, this is my old submarine.
A death cross is a predictive technical indicator. Specifically, it is when the 50 day moving average drops below the 200 day moving average.
It is a clear indicator that none of the support levels in the past 9 months are sustainable and we are headed for deep decline in that product. In this case, commodities.
As for good vs bad ... depends on your position within that product.
deflation
It is used by technical analysts as a predictor that a long term trend may be ending.
What exactly is a death cross and should I be happy or scared?
Scared if you are in the market.
Some investors use moving averages of different time frames to signal buy or sell.
The 50 day mav and the 200 day mav are very important to those investors. This crossing of the 200 by the 50 means in the reading of the tea leaves means that there is much more downside to follow.
Technical analysis is pure BS. Just a sales tool for hustlers.
“Death cross” is when the 50-day moving average crosses under the 200-day moving average. This is a classic, classic investing indicator.
Here’s quick overview: http://www.investopedia.com/terms/d/deathcross.asp
I will try to find Karl Denninger’s excellent video he created about same & ping you to same.
“all shore duty” Funniest thing I’ve heard all year:)
Maybe but reality is what is in the minds of the investors.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.