I was just over at our newest blogger’s site, chessNwine, checking out his stellar charting skills. He made a remark about the impending 20 day average cross beneath the 50 day average on the SPX, which reminded me of some recent testing I did on this cross, which is widely considered to be bearish. My testing shows that it is actually not as bearish as one might think, and it might even make a decent buy signal.
Considering that February’s cross marked the low almost to the day, the results in my testing which did not include February’s cross, would be even more bullish.
You can decide for yourself:
20 Day and 50 Day Cross: Time to Short?
Thanks for the shout. Didn’t Karl Denninger mischaracterize the 50/200 golden cross last summer? I vaguely remember something like that between you and him. I think he was trying to negate it as not being bullish, but his argument was not clear to me.
Haha. Denninger is a doofus. Yes, my testing showed he was exactly wrong about the Golden Cross. I proved him wrong on his site, and so he deleted all my posts, lol. Then, his zombies came over to iBC and tried to eat my brains. Good times!
In the end, he tried to win the argument with semantics, but was no match for Mr. Woodshedder.
Here are the posts:
http://ibankcoin.com/woodshedderblog/2009/07/06/myth-busting-putting-nail-in-coffin-falling-cross-myth/
Haha nice. Yeah, I would hate to turn into Denninger during my first tabbed week at iBC. I wonder what the statistics would be on back-to-back bullish outcomes of the 20/50 cross, since we just had one in Feb. that was bullish. I think the last one before that was during the bear market.
Nah, you don’t have anything to worry about. Its okay to be wrong. Its not okay to be an arrogant asshole.
Cool–I changed my chart and gave you a trackback here, so as not to lead anyone down the wrong path. Thanks for pointing it out to me.
Looking forward to blogging with you more Chess!