Part 4 of 4: White Top View, Market Direction series. Yesterday we began our discussion of five key stock market direction pointers. Today we conclude that discussion. Digging deeper into economic data can refine the results but there is little practical reason to do so. The basic approach works well. Trending up produces a rising stock market; tending down produces a falling stock market. When the trend is up, confidently take stock positions. Go long by buying shares. Purchase stocks that benefit most from economic growth. If the trend is down, get out of the market by selling stock positions and going to cash. Alternately in a down market, sell short to profit from falling stock prices.
Lists the White Top View four part series, Market Direction. Series discusses stock market guidelines and trend indicators used by investors to look ahead. Covers the topic from general trends to specific points of economic data useful to investors.
Part 3 of 4: White Top View, Market Direction series. Get a fast read on the most likely stock market direction. Some easy observations and a few simple questions can give you a reliable and useful indication of stock market direction. Among your contacts, neighbors, friends and family, observe and ask questions on the five following points: Careers advancing or are jobs being lost? People concerned or confident about employment? New cars being bought or old cars repaired? Houses being purchased and renovations made? More people upsizing or downsizing? You can spend weeks delving deeply into economic reports or listening to the droning and arguing of pundits, experts and politicians. Or use this simple alternative approach which works very well.
Part 2 of 4: White Top View, Market Direction series. Investors use data to look forward, typically about 6 months. While not strictly a prediction, it expresses near term expectations of economic direction. That so called predictive function can strongly suggest the most probable future. That can tip us off to both opportunity or danger in the markets. We can use it as either or both a big money-maker or capital saver! The desire to know the future direction motivates much research. Seeking, compiling, identifying and reporting indicators keeps many people busy.
Part 1 of 4 in the White Top View, Market Direction series. The market has a predictive function, the trend is your friend, Up, go long, down go short or get out. Use those three stock market guidelines rather than endless expert reports. The market looks about 6 months ahead anticipating where the economy will be going during the next two quarters. Identify that trend, up or down and take positions that benefit from that direction. When the trend is up, play long. When the trend is down, play short or get out.
Autos, jobs and the FED Part 2 of 2 in the White Top View series: Key Market Indicators. Part 1, 4 Signals cut through stock market noise introduced these key market indicators. This time auto sales, employment and the Fed or U.S. Federal Reserve funds rate are discussed.
Key market indicators for anyone interested in stock market direction are reports of house prices, auto sales, employment and the FED fund rate. Together, these indicators reliably point to the stock market direction. They are dependable indicators on the collective economic activity of the population. Stock market direction consistently follows the direction of the general economy.