Investing.com has a market roundup for us this morning. It’s actually a somewhat helpful summary of yesterday’s events and ‘need to know’ stuff for today.
Opening Bell: Futures Drop on Risk-Off Shift, Nasdaq Posts Death Cross
But two things…
Thing 1
Why does there always have to be a reason put forth by the financial media, every damn day about why the market goes up or down? “Risk-off shift”… Really guys? Can’t the market just consolidate a jawbone-instigated and hysterical gain for no other reason than it’s normal?
Thing 2
The dreaded Death Cross.
The NASDAQ Composite (+2.95%) outperformed its peers, after a six-week slump. However, it executed a Death Cross, as the 50 DMA crossed below the 200 DMA.
It really is amazing how often such scary sounding TA things are met with the opposite implication. Get this; the Death Cross along with its pal the Golden Cross are TA gimmickry. Especially when the TA puts a technical sounding word like “executed” ahead of it.
TAs all too often try so hard to make their craft sound legitimate, like a science or a field of study. It’s actually just lines, squiggles, trends, measurements and a hell of a lot of personal interpretation (read: bias) and a want for being taken seriously. I am a TA, so I can write this freely. Cue the old story from my neighbor who worked at a firm where the real analysts used to make fun of the nerds in the TA department.
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