mr john andrew (gus) simpson, page-53

Wanelad

I wouldn't look at a stock unless it was on the verge of making a "Golden Cross" as PEN did last April.

I wouldn't look twice at a stock that had recently made a "Death Cross" as WCU did last month, (or BMN last week).

"Long-term crossovers carry more weight than short-term events. The Golden Cross represents a major shift from the bears to the bulls. It triggers when the 50-day average breaks above the 200-day average. Conversely, the Death Cross restores bear power when the 50-day falls back beneath the 200-day. The 200-day average becomes major resistance after the 50-day average drops below it, and major support after breaking above it. When price gets trapped between the 50-day and 200-day averages, it can whipsaw repeatedly between their price extremes. This pinball action marks a zone of opportunity for swing trades."