Sheaff Brock Money Manager Highlights "The Golden Cross"

INDIANAPOLIS, Aug. 25, 2020 /PRNewswire/ -- Sheaff Brock principal Dave Gilreath noted the recent appearance of "The Golden Cross," which signifies potential of a major rally or bull market on the horizon.

As defined by Investopedia.com, the Golden Cross is "a candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average." Gilreath explains that, when this occurs, it means "short-term momentum is 'carrying the market' and sets up, oftentimes, a major rally or a bull market in the ensuing months."

July 2020's "Golden Cross" saw the 50-day moving average break above the 200-day moving average for just the third time in the last five years and only the seventh time since 2005. After each of those events, according to TD Ameritrade Thinkpipes, the S&P 500 experienced a market rally lasting from 8 months in 2010 to 41 months (3-1/2 years) beginning in 2012. Average percentage market gain during those bull markets was 30% within an average of eight months.

Gilreath notes that, since being in this period for one month, the market has gone up by close to 6%. And, while past performance is no indication of future potential, he considers historical data regarding markets post "Golden Cross" a good omen for the months ahead.

About Sheaff Brock:
Sheaff Brock is an SEC-registered, fee-only independent investment firm striving to enhance portfolios of growth- and income-oriented investors, managing $900.4 million in assets nationwide as of 6/30/2020. Sheaff Brock principal David Gilreath contributes investment commentary to CNBC.com, Seeking Alpha, and Financial Advisor magazine. Visit Sheaff Brock YouTube for information.

Disclaimer: 
Sheaff Brock Investment Advisors, LLC ("SBIA") is an SEC-registered investment advisor founded in 2001. Clients or prospective clients are directed to SBIA's Form ADV Part 2A prior to deciding to participate in any portfolio or making any investment decision. The views and opinions in the preceding commentary are subject to change without notice and are as of the date of the report. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, and is not intended to predict or depict performance of any investment.

SOURCE Sheaff Brock Investment Advisors

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