A stunning amount of digital ink has been spilled over the GOLDEN CROSS, which is the media’s favorite elementary school technical indicator. With it, they show that the 50-day moving average has crossed above the 200-day moving average, and by golly, that has always meant, 100% of the time, that a new bull market has started. I’ve seen this announcement countless times this week.
Well, I’d at least like to point out that the simple moving average did that. Still, I prefer to watch the exponential moving averages, thank you very much, and no such crossover has occurred, although it’s terrifyingly close.
I’m not really hung up on indicators anyway; you probably have figured out since I refer to them rarely. But I at least want to lodge my complaint against the universal chatter that, by gum, the golden cross is a sign from God almighty that the bulls will get yet another extension on their ceaseless government-funded bull market that started in early 2009.
