Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

Investopedia recommendation of SPPI and the Golden Cross. An article from Investopedia came out today titled (Top 4 Small-Cap Stocks for 2017). I've learned that you can't get to excited over these articles. That was especially the case when articles/comments came out with routine regularity. But having gone through this dearth of articles, I found this article was refreshing even if it barely said anything. One of the most significant parts of the this article was the Title - Top 4 Small-Cap Stocks for 2017. It's nice to be associated with being 'tops'. This is what it says about SPPI

Spectrum Pharmaceuticals Inc. (SPPI)
Spectrum Pharmaceuticals Inc
SPPI
5.93
+3.13%

Spectrum is a biotech company, so there is added risk here. Biotechs can soar or sink based on a single product. Spectrum Pharmaceuticals has six products, none of which you may have heard of, because they are for the treatment of cancer and some more exotic diseases. The company has some significant licensing agreements, and collaborates with other drug companies.
This small-cap stock had a high-volume breakout last November, and after moving sideways for a while, has moved sharply higher. Its 50-day moving average crossed above its 200-day moving average. This is called a “golden cross,” and is considered bullish by investors. The stock has given back some gains from its recent breakout.

Avg. Volume: 648,787
Market Cap: $460.61 million
Beta: 1.39
PE Ratio (TTM): -7.19
EPS (TTM): -0.81
Dividend & Yield: 0.00 (0.00%)

But what I did take interest in was the the technical analysis. I know just a little bit more than diddly squat regarding technical analysis so when it mentions a Golden Cross I was curious to know what that meant. Here's what it says

What is a 'Golden Cross'
The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level. As long-term indicators carry more weight, the golden cross indicates a bull market on the horizon and is reinforced by high trading volumes.


BREAKING DOWN 'Golden Cross'
There are three stages to a golden cross. The first stage requires that a downtrend eventually bottoms out as selling is depleted. In the second stage, the shorter moving average forms a crossover up through the larger moving average to trigger a breakout and confirmation of trend reversal. The last stage is the continuing uptrend for the follow through to higher prices. The moving averages act as support levels on pullbacks, until they crossover back down at which point a death cross may form. The death cross is the opposite of the golden cross as the shorter moving average forms a crossover down through the longer moving average.

Applications of the Golden Cross
The most commonly used moving averages are the 50-period and the 200-period moving average. The period represents a specific time increment. Generally, larger time periods tend to form stronger lasting breakouts. For example, the daily 50-day moving average crossover up through the 200-day moving average on an index like the S&P 500 is one of the most popular bullish market signals. With a bell weather index, the motto "A rising tide lifts all boats" applies when a golden cross forms as the buying resonates throughout the index components and sectors.
Day traders commonly use smaller time periods like the 5-period and 15-period moving averages to trade intra-day golden cross breakouts. The time interval of the charts can also be adjusted from 1 minute to weeks or months. Just as larger periods make for stronger signals, the same applies for chart time periods as well. The larger the chart time frame, the stronger and lasting the golden cross breakout tends to be. For example, a monthly 50-period and 200-period moving average golden cross is significantly stronger and longer lasting than the same 50.200- period moving average crossover on a 15-minute chart. Golden cross breakout signals can be utilized with various momentum oscillators like stochastic, moving average convergence divergence (MACD) and relative strength index (RSI) to track when the uptrend is overbought and oversold. This helps to spot ideal entries and exits.

Still a lot of gibberish but I did take home that it's a bullish indicator. Kind of coincides with my 'overall feel' indicator on why I'm invested in SPPI.