The Death Cross and What You Should Know

This chart formation lets you know when to be on offense or defense. You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. [Image] Weekly Market Update Today is Feb. 12, 2022 Hey TMI Subscriber, The Death Cross… Sounds ominous, huh? That’s because it often can be for stocks. The Death Cross involves one of the simplest technical gauges used by analysts and investors — moving averages (MA). The short-term 50-day MA and longer-term 200-day MA represent the average price of a stock over those respective time periods. When a stock falls below its 50-day, it’s showing weakness over the short-term. When it dips below its 200-day, it suggests a longer-term downtrend might be imminent. This is true on the upside as well. A Death Cross occurs when the 50-day moving average falls (or crosses) below the 200-day moving average. Simply put, this means that the short-term average price of the stock is falling below its long-term average. We can see how this played out looking back to the financial crisis. Around April 8, 2008, the 50-day moving average for the S&P 500 fell below the 200-day moving average, as you can see in the chart below. Those who followed this bearish indicator would have avoided nearly the entire market crash. You would have also avoided the tech bust in the early 2000s using this method. More importantly, in both instances, the indicators eventually did the reverse – they formed a “Golden Cross” when the 50-day moved above the 200-day. This move showed investors that it was safe to enter the market shortly after it bottomed. You can see the Golden Cross below, circled in red. Of course, no indicator works as expected 100% of the time, and these crosses are no exception. You should use it in conjunction with other technical indicators like Relative Strength (RS) charts and the [NYSE Bullish Percentage Index]( two go-to tools at TMI. TMI Founder Chris Rowe has an awesome track record when it comes to recognizing market tops and bottoms using those tools and several others in his arsenal. On [December 30, 2019]( right before the markets crashed in March 2020, he sent an [alert to his followers]( urging them to begin hedging against a bearish downtrend. Those who didn’t heed his warning went on to lose 40% of their wealth. So, have death crosses popped up on any stock charts in 2022? Yep. Quite a few. [Check out a list here.]( And if you’re invested in any of those stocks or ETFs, be sure to monitor them closely for signs of what you might want to do next. Or just continue following TMI to find out what you should do. Chris Rowe and a handpicked expert on cryptocurrency can also tell you what you should do — and not do — to profit from this alternative investment. [Click here to watch their presentation](. Here’s a review of the latest TMI articles. This Week in True Market Insider Feb. 7 - Feb. 11, 2022 [Micro-Cap Monday: You Can Still Get Aboard This Surging Shipping Stock — Bill Spencer]( Find out which Greek shipping company Bill Spencer featured back in April 2021, that gained 185% in the next five months, and still has another [50% left in its tank](. [Technical Tuesday: What that -5.26% January Start Says About 2022 — Chris Rowe]( Chris Rowe believes in the adage, “as goes January, so goes the year.” Then, why is he so positive considering the S&P 500 had its fourth-worst performance in history? [Find out why here](. 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