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 -GameStop Corp. (GME) Q2 Earnings Preview: The New Masking the Old?]

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 imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. 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.