logo
  Join        Login             Stock Quote

Why Is Everyone So Consumed With The 50-Day Moving Average?

 October 13, 2011 12:16 PM


Yesterday the S&P 500 traded above the 50-day moving average for the first time since July. Technically it is a good signal for the bulls but not the type of billboard buy signal that some people are making it out to be.

I would use caution here if you are thinking of long positions in the market now – you missed your opportunity last week.I have to admit it's an impressive rally staged by the bulls – one that we all didn't think would be this strong. Just in the last 5 trading sessions, the S&P has surged nearly 8% and the Russell 2000 has climbed more than 13%. But before you get too hyper keep in mind that we are still firmly in a downtrend at this point and bear market type rallies are strong by nature. I would expect this current rally to get sold fairly quickly if it starts to stall.

[Related -Chart Says This Retailer's Comeback Isn't Finished]

At the flip of a switch it seems that investors are no longer worried about the Euro-Zone debt problems. This is far from over and will once again rear it's ugly head in the near future. Don't get fooled, stop watching the news and feeding off the top stories. Start exiting long positions and use this opportunity to buy protection for another drop a cheap prices.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.