Golden Cross

We’ve been playing close attention to the share price of Appinators stock (our favorite tech company), and we’ve got a feeling that something big is about to happen. We’ve got two charts in front of us that have led us to this conclusion. The first shows Appinators’ trade activity over a three-month period: there are slight ups and down, but overall, the volume remained pretty steady. The second chart shows trade activity over the last two weeks, and we swear, it looks like we’re looking at info from two different companies. The newest chart shows that there was a small dip about nine days ago, and then a sharp upward swing in trade volume started. The next logical conclusion, as far as we’re concerned, is that Appinators’ share price is about to skyrocket. The market’s going bullish on apps, and we’re going to capitalize big-time.

So what do golden crosses have to do with any of this? Well, let’s go back to our two charts. On each, we can trace the stock’s moving average, a line that shows trade activity while smoothing out the highest peaks and low valleys. On the longer-term chart, the line is somewhat flat, with some ups and downs, but nothing super-exciting going on. On the second chart, we’ve got a small dip in the line followed by a sharp upward trajectory. If we lay those charts on top of each other and line up the indices, the place where the new line crosses the old is what’s known as a “golden cross:” the point where it looks like trade activity is about to go boom and potentially make some people a lot of money.

When the opposite of this happens, FYI, it’s called a death cross. It usually indicates that a stock’s trade activity is about to enter a death-like state marked by little to no activity and possibly some sad and mournful investors. The term is a little morbid-sounding, maybe, but it definitely gets the point across.