Russell 200 index death cross

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    It's been 14 trading sessions since the financial media was abuzz with the fact that the Russell 2000 Index experienced a Death Cross. That is to say its 50-day simple moving average (SMA) trended below its 200-day SMA. The coverage was all about why the Death Cross spelled impending doom for small-cap stocks and, by extension, the entire stock market.

    In fact, in all of the Death Cross commentary I saw on television and read on the Internet there was no mention of historical performance after a Death Cross. None! Just a lot of hyperbole about why we should be concerned.

    Indeed, instead of even the most basic statistics, all the well-spoken analysts, well-dressed pundits, and market commentators just kept showing chart screenshots of the current market condition as a reason why we should all hunker down for a correction.

    Basically, a sample set of one.

    And as you remember from Statistics 101, a sample set of one means absolutely nothing! It's not's even really a set because a set implies at least two data points.

    The lack of statistical support raised quite a few questions about the actual performance of stocks following instances of a Death Cross the Golden Cross - when the 50-day SMA trends above the 200-day SMA.

    So, I took it upon myself to do myth-busting, and what I found has startling lucrative implications for every savvy investor.

    Indeed, my test results suggest some actions that will set us up for a profitable ride ahead... Full Story

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