Shared on 2/1 that A “Golden Cross was about to take place in the high yield mutual fund complex.” (See post here) Below is an update to that post.
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12 days after the 2/1 posting, 3 of the 4 high yield mutual funds 50EMA has moved above the 200EMA. In the past this has been good news for the funds and the broad market!
The so-called Golden Cross turned into a Death Cross (where the 50EMA crosses below the 200EMA) in July of 2007, signaling to get out of the high yield funds before their tanking and before the stock market fell off a cliff.
If I remember correctly they did the same thing in May of 2008 when everyone was giddy about the Feds alphabet soup of liquidity measures only to top out within a week of the crosses.
The LTRO is Europe’s version of alphabet soup.