Fintech executive, writer, math geek, and investment systems developer. Founder and CEO of Altruist and Founder of FormulaFolios.

A Good Way to Time the Market?

A Good Way to Time the Market?

After my last post I got an email asking about "the golden cross" or "the death cross." For those not familiar with the terms I've recorded a video for you below. Basically the "Golden Cross" refers to when the stock market's 50 day average price moves above the 200 day average price. This is seen as a bullish sign and some believe it's the only time investors should be in the market. The "death cross" is the opposite, when the 50 day average price falls below the 200 day average price. It's often looked at as a bearish sign and that the markets momentum is heading downward. While not a perfect indicator of when to get out of the market, it does significantly reduce some of the major drops in the market.

So in the video I explain this visually as well as share some of the statistics of using the strategy as a defensive tool in protecting an investors account. Keep in mind this is just a study and in no way a recommendation to either use or not use "the cross" as a method to profit from the market. More just observations and some input on how we use it.

If you have any comments or questions be sure to use the comment box below the video to let me know. If you like what you're learning from my blog feel welcome to share it with those you think might benefit.

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