On the daily chart, HOOD has formed what’s known as a “Death Cross.” This occurs when the 50-day moving average falls below the 200-day moving average. In simple terms, it signals that recent price action has weakened enough to shift the longer-term trend lower.


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This pattern doesn’t guarantee further downside, but historically it often marks the beginning of a more sustained bearish phase rather than just a short pullback. When shorter-term momentum drops below the longer-term average, it shows sellers are gaining control.

For options traders, this type of trend shift can create opportunities on the put side — especially if price continues making lower highs and stays below both moving averages. As always, confirmation and risk management are key.

I wish you the very best,

Wendy