How to Play the Death Cross From Both Sides



Comments (4)

  1. Bill says:

    Sticking with your premise, what about the Death Cross in March 2000 and again in Jan 2008? Was this a profitable move then or a disaster for the following two years? Short-term trading notwithstanding, most investors are worried about the “BIG ONE” these days.

    [Reply]

    Jonathan Rodriguez Reply:

    Thanks for your question, Bill. Yes, there were similar profitable opportunities following the 2000 and 2008 S&P death crosses. Obviously, everyone’s tolerance for risk is different but generally speaking, the tough part is being able to ride out the rocky period right after a death-cross to greener pastures.

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  2. Fred perayeff says:

    How low will the S&P 500 go down after a death cross, according to your research? Thanks.

    [Reply]

    Jonathan Rodriguez Reply:

    Great question, Fred. Unfortunately, it’s impossible to know how far down the market will fall following a death cross. However, on average you can expect about a 1% drop in the S&P 500, one month after the cross.

    [Reply]

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