Many of the broader market ETFs have recently seen their 20 day moving averages fall and cross beneath their 50 day moving averages.
Is this is good time to get short?
1. The close is higher than the 200 day moving average (ensures there is still a primary up-trend).
2. The 20dma crosses beneath the 50dma.
3. Sell short SPY, IWM, QQQ on the next open.
4. Buy to Cover n days later.
No commission or slippage included in tests.
The Results: Average Trade
The Results: Percentage of Winners
With the possible exception of [[IWM]] , it appears that there has been no edge in getting short after the 20 day crosses beneath the 50 day average on these three ETFs. In fact, for [[SPY]] and [[QQQQ]] , the setup has been more effective as a buy signal.