The 50/200 Cross: CWT and FL
A stock scan performed after the close on Tuesday for “the cross” found two stocks that might be instructive:
- California Water Service Group (NYSE:CWT)
- Foot Locker, Inc. (NYSE:FL)
California Water Service (CWT)
CWT is in the water utility industry, the second one in two days to make the list. Zacks.com recently produced a bullish research piece on the company.
Daily Chart with InVivo Swing Trading Tools
Daily Chart with 50- and 200-day Moving Average
Foot Locker (FL)
FL is in the retail footwear industry. In July there was a golden cross. The bulls made an effort but bears showed up in force by October. Last week they announced earnings that investors did not like.
Daily Chart with InVivo Swing Trading Tools
Daily Chart with 50- and 200-day Moving Average
The 50/200 “Cross”
The thesis goes something like this: the up or “golden” cross (50-day MA moves above 200-day MA) is supposed to be bullish while the down or “death” cross (50-day MA moves below 200-day MA) portends to weakness.
A Word About Stock Picking
What you should do with these ideas are up to you. We believe individual investors should make speculative trades in individual stocks only with mad money after fully funding retirement accounts according to a balanced portfolio strategy. Use a well-defined process to evaluate buy and sell signals. You may wish to investigate these ideas further with the following questions in mind.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
