GLD, the gold ETF, prints a golden cross on 1/23/19 to begin the new year. The 50-day MA pierces up through the 200-day MA (by 3 pennies). Gold enthusiasts are singing songs and throwing confetti.
Typically, after a golden cross occurs for any ticker or index, price will retreat. This is because it takes a long time, many days and weeks, for price to work higher to cause the 50-day MA to curl higher and eventually pierce up through the 200. After price spends all that time ramping skyward, in the chart above price has been moving higher since August, it needs a rest. GLD price edges down off the top right now which is the expectation after the golden cross.
After price has a few days to relax downwards due to all its hard work to create the golden cross, GLD will continue higher going forward as long as the golden cross remains.
GLDM is a new gold ETF that has been trading for a few months. This is a cheaper version of GLD, humorously, the poorman's gold ETF, or perhaps GLD's 'Mini-Me', if you will. GLDM is at 12.81 versus GLD at 121.28 a ten times difference price-wise. GLD traded at 5.2 million shares yesterday while GLDM was at 500K shares so obviously GLD has far superior liquidity. GLDM is close to having enough data to start printing a 200-day MA and the expectation would be for a golden cross to appear as soon as the 200-day MA appears on its chart. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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