The Mighty MACD
(This was sent to email subscribers via email on 4/15/2024)
Almost 30 years ago I attended a technical analysis class and first heard the term MACD…pronounced MAC-D. It was probably the first real technical indicator I ever used, and I’ve had a fondness for it ever since.
There are several ways to use the MACD, but one way is when the moving average crosses over the zero line. A cross up is positive, and could signal an uptrend is starting, and a cross down, below the zero line, often means it’s time to load some shorts, or at a minimum protect long positions.
We’ve been watching the MACD on a daily chart for the QQQs for weeks now, and it’s knocking at the door of that zero line. This after some pretty strong candlestick patterns that indicate the index is at best in a sideways range, and at worst…unless you’re short the QQQs…that a steep decline may be in the immediate offing.
Protection may be the word of the day as this pattern plays out, and the old fashioned MACD calls out loudly for a decline.
Best of luck in your trading!