Monday, July 13, 2009

Death Cross Failures 1982-2007

now if one wants to 'back test' 50/200 day moving average crosses, the test should not be limited to the 'golden' variety, but should also include 'death crosses'. seems to me that buying a golden cross in a bear market should be about as profitable as shorting a death cross in bull market.

now count the death crosses (when the 50 dma goes below the 200 dma) from the 1982 to 2007 period for the Dow Industrials. when I get up from my nap I'll try to approximate the potential returns.