The Golden Cross and Death Cross is a system covered in our Daily Trading Signals.  Its performance versus other trading systems is also tracked.  Signals are long term trend following and watched by most market technicians. 

On July 6, 2010 the S&P 500 gave a “Death Cross” Sell Signal.  It is still on a Sell Signal.

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The Golden Cross or Death Cross occurs when the 50 Day Moving Average crosses the 200 Day Moving Average.  When the 50 Day Moving Average is crossing from below the 200, it is called “Golden Cross”.  When the 50 Day Moving average crosses from above to below the 200 Day Moving Average it is called the “Death Cross”.  This system is a very long term trading system and is often very late on entry and exit.  It does have a fairly good track record with many Indexes and other assets.  It makes very few trades as compared to shorter term moving averages like the 50 Day Moving Average system.  It can produce disastrous results if used for every stock index, ETF, or stock.

Other widely followed moving averages are the 50 day moving average and the 100 day moving average. Some money managers will use these moving averages with a shorter moving average and use the cross of the shorter moving average above or below the longer moving average to generate trading signals. The Wall Street Journal displays a 65 Day Moving Average in their charts. The goal of two moving averages and even 3 moving averages is to eliminate whipsaws that often occur with moving averages as a technical analysis indicator.

 Why should you care about the signals produced with the 50-200 day moving average? There are so many people using the 50-200 day moving average, that we will often see extreme volatility in indexes when they cross both above and below the 50-200 day moving average. 

The table below shows the current 50-200 day simple moving average condition on the 50 most actively traded ETF’s. 

Security Name Trend5 Ticker
Barclays High Yield Bond Stay Short JNK
BRIC IShares Stay Short BKF
Coal Power Shares Stay Short PKOL
DB Commodity Index Stay Short DBC
Diamond Trust DOW Stay Short DIA
Energy Select SPDR Stay Short XLE
Internet Holders Stay Short HHH
IPath India Index Stay Long INP
IShare Russell 2000 Stay Long IWM
IShares 25 Index Stay Short FXI
IShares Australia Stay Short EWA
IShares Basic Materials Stay Short IYM
IShares DJ Real Estate Stay Long IYR
Ishares DJ Transportation Stay Long IYT
Ishares Emerging Markets Stay Short EEM
IShares Financial Sector Stay Short IYF
IShares Germany Stay Short EWG
IShares Hong Kong Stay Short EWH
IShares Latin America Stay Short ILF
IShares Mexico Stay Long EWW
IShares Mid Cap 400 Stay Long IJH
IShares MSCI EAFE Stay Short EFA
IShares MSCI Japan Stay Short EWJ
IShares Pacific ex Japan Stay Short EPP
IShares S&P 500 Growth Stay Short IVW
Ishares S&P Small Cap 600 Stay Long IJR
IShares Silver Stay Long SLV
IShares South Africa Stay Short EZA
IShares South Korea Stay Short EWY
IShares Taiwan Stay Short EWT
IShares United Kingdom Stay Short EWU
NDX 100 Stay Long QQQQ
Oil Service Holders Stay Short OIH
Pharmaceutical Holders Stay Short PPH
PowerShares US Dollar Index Stay Long UUP
Russia Stay Short RSX
RYDEX S&P 500 Equal Weight Stay Long RSP
S&P 500 Stay Short SPY
Semiconductor Holders Stay Long SMH
SPDR Consumer Descretionary Stay Long XLY
SPDR Consumer Staples Stay Short XLP
SPDR Gold Shares Stay Long GLD
SPDR Healthcare Stay Short XLV
SPDR Industrial Sector Stay Long XLI
SPDR International Real Estate Stay Short RWX
SPDR Materials Stay Short XLB
SPDR Metal & Mining Stay Short XME
SPDR Mid Cap Stay Long MDY
SPDR S&P Homebuilders Stay Long XHB
SPDR Technology Stay Short XLK
Steel Market Vector Stay Short SLX
US Oil Stay Short USO
Wisdom Tree Total Dividend Stay Short DTD


You should not trade any system trading plan without proper back testing and analysis of the trading characteristics of the index, stock or ETF you are trading. 

These trading signals are provided courtesy of the website you are viewing.  This information should not be used without research and advice from a financial professional.

Be aware that this condition can and will change any day in the future.

We monitor the 50-200 day moving cross system daily along with a number of other system trading plans.

There is No “Holy Grail” in trading systems. Do not use the 50-200 day SMA or any other system trading system without proper research on the asset.

For questions on rule based, system trading, contact