Golden and Death Crosses

The crossing of the 50 day moving average above the 200 day moving average is often referred to a Golden Cross.  Where as the crossing of the 50 day under the 200 day is often referred to as a death cross. The implications are that the market will continue in that said direction (Golden = Up, Death = Down).  Are these definitions worthy of the press and discussion they receive?

Today I will test these crosses against both SPY and QQQ utilizing all the quotes for each (approximately 25 years). A buy is held until the death cross occurs and vice versa for shorts. If you have another exit strategy, feel free to employ and test it. First SPY.

  • Reading the Back test report, i.e. what each line means Go: Here!

Long trades only about equaled buy and hold, maybe just a hair better. Short trades a disaster. Next QQQ

Pay particular attention to the buy and hold column and compare it to the rest. Draw your own conclusions; you are big boys and girls now 🙂