By Tom Aspray, MoneyShow.com

Many investors are likely aware of the term golden cross, which is defined as a short-term moving average (MA) crossing a longer-term moving average. Most often, this refers to the 50- and 200-day moving averages.

On Jan. 3, the 50-day MA for the SPDR Diamond Trust (DIA), the primary Dow-Tracking ETF, crossed above the 200-day MA. The 50-day had been below the 200-day since Aug. 24, 2011.

The performance measures for buying or selling based solely on golden crosses is dismal, but I do feel that they can help identify opportunities in the markets. It should be noted that the 50-day MA on the Spyder Trust (SPY) is still 1.6% below its 200-day MA.

I have also noticed that in many cases, stocks that form new bullish crosses are ones that are also outperforming the S&P 500, meaning they show positive relative performance, or RS analysis.

These four stocks also have positive volume patterns, which allows for clear entry and stop placement.

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Chart Analysis: WESCO International (WCC) is a $2.3 billion wholesaler of industrial equipment. The stock hit a high of $64.90 in early 2011 and dropped as low as $31.06 in early October.

• The daily downtrend, line a, was broken in early November, and after a setback, it surged back above
• WCC has overcome the 61.8% Fibonacci retracement resistance from the early-2011 highs
• The moving averages are now just below $50, which represents first support
• The last swing low is at $48.46 with the late-November low at $44.77
• The on-balance volume (OBV) broke through resistance at the end of October and is leading prices higher. The weekly OBV (not shown) is also positive

Energy XXI Limited (EXXI) is a $2.5 billion oil and gas equipment and services company. It operates in Louisiana and Texas, as well as offshore in the Gulf of Mexico. EXXI traded as high as $37.20 in May 2011.

• EXXI shows very strong relative performance, as it has performed four times better than SPY since the October lows
• There is minor support now at $32 with the moving average support now at $30.13
• There is much stronger support, line d, in the $28 area
• The daily OBV made new highs on Monday (line e) and has been very strong since the October lows
• The weekly OBV (not shown) formed a bullish divergence at the October lows and is above its weighted moving average (WMA)
• It should be noted that on a seasonal basis, crude oil typically bottoms in February

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