Trend Following Golden Cross Trade
Bullish followers of the stock followers have one more reason to be positive. For the first time in 4 years the 50-day moving average of the SP 500 & Nasdaq crossed above the 200-day moving average. Technicians call this the Golden Cross. There have been tons of studies that once this occurs the market continues for months at a time to go up. The contrary of this a Death Cross. When the 50 day moving average crosses below the 200 day moving average.
Trend followers do not predict. They simply follow trends.Signs like the Golden Cross are possible confirmations of the continuance of a trend. On a personal level even though I did not believe in the SP & Nasdaq move however my methodology signaled a buy on 9.9.2010 for the ND with current open trade profit of $4465 per contract and on 9.10.2010 for the SP 500 with current open trade profit of $4073. After years of trading and maturity I know that my opinions mean nothing. Find a Commodity trading advisor who has a robust methodology, who understands risk and mostly follows his methodology with discipline & patience or if you can do it yourself …Do it…Forget CNBC or Bloomberg. No one knows anything more than you…
Futures trading involves risk. People can and do lose money