This is a follow-up post to one from January on the same topic.
The Golden Cross is a trend following technique that gets you long when the 50-day exponential moving average crosses above the 200-day exponential average. The Death Cross, or Black Cross, is the opposite and it gets you short. Over the past decade it has worked sweetly.
We ran a chart of this in the newsletter this morning showing how things have been developing lately. My editor also asked about it but my answer was that it is not quite ready for a serious challenge to the current bearish view. In other words, it will be some time before the Golden Cross can occur barring a market melt-up.
You will see this in my column when it gets close but thinking back to the summer of 2006 when they almost crossed (to the downside) I will remind you not to jump the gun.
As for the long or short only result, you have to use money management, too. That would have gotten you flat a long time ago after (but not at) the March bottom.