Not wanting to spend a lot of time on the markets in the next...

Not wanting to spend a lot of time on the markets in the next couple of months as the oceans beckon therefore have been looking at some longer term prospects. By adding a few indicators you can get a better idea of longer term momentums (when I say longer term it means weeks and a few months not years) that I thought I'd share.
So on the below chart we simply add a 50 day ema (red) and a 200 day ema (blue). Now the bullish momentum is when the 50 is above the 200 and obviously it's bearish the other way around. Once the bullish breakout began in 2021 you can see that when exhausted, the 50 has indicated that it was heading towards crossing below the 200 but announcements arrived and off it went again (circled). The final straw was in the 8th month of this year when the negative cross finally happened (star) which has led to a large retrace.
This week we have seen the SP cross back above the 50 and even the 200. You can also see the dramatic "v" turn of the 50 back towards the 200. That's what you need to see happen for a strong bullish move. It's what is known as a "Golden Cross". Of course the the opposite is known as a "Death Cross" (star).
Many investors will only enter stocks where the 50 is above the 200 which confirms an entry into an uptrend. And any time the 50 rolls over towards crossing back below the 200 they will exit.

So, bring on the "golden cross". There's a bit of work to do yet but it's now heading the right way.



Having said all that, we need to monitor what the sector is doing and unfortunately it's been a horror show this week.

Chart since June. Last night was not good so expect a tough Monday. In fact don't even turn on your computers.


Now for the all important weekly and we can see that it's printed beautifully with the SP not coming near the 200 until recently and the 50 is nicely above it. By the way, check out the below MACD (circled), very nice cross there.



This growing short / hedge position is worrying. 3.4%


Cheers