Which Way The Market

I am hearing anticipations by brokers, financial planners, talking show hosts and the talking caputs on television that the market is going back to its old highs - DOW 11,700 and NASDAQ 5000 here we come.

It looks to me that in 2000 Iodine heard these same people saying there was no top to the market and were looking into their crystal balls for DOW 30,000 or some other antic number. Suddenly the market turned over with the DOW dropping 3,000 points and the NASDAQ losing 80% of its value. Can it go on again? Iodine don’t foretell and all I can state is the market can make anything.

BUT what if it makes bend down? Are you going to sit down as you did before and ticker your money disappear? Right now everything looks rose-colored and the impulse is carrying the indexes higher almost every day. Buy and throw is the right strategy.

Hind sight is always 20/20 and you will desire to have pillory and common finances now, but not get caught in the adjacent down draft. There will be one! There always have and you can see it clearly if you are a student of market history. Since 1900 there have got got been 16 to 18-year rhythms of bull and bear markets and within those there have been other shorter rhythms of ups and downs.

Many brokers and investors seek to foretell when those bends will happen and they are mostly wrong. It is definitely not a good thought to seek to outguess the market. You must learn to read the rather obvious marks of the major turns. I state obvious, but it is clear they are not obvious to most brokers or financial planners. Having been a professional trader, exchange member and flooring bargainer for many old age I will state you the obvious ‘secret’.

Using a 200-day moving average of any 1 of the major indexes (I prefer the S&P500) you can plot these every twenty-four hours and when the index penetrates the 200-day line in an upward direction it is a signaling to buy. That is where we are now. Inversely when it penetrates that line going down it is clip to sell and set your money in cash or bonds. If you don’t desire to make the mathematics calculations there is an first-class chart in the Investor’s Business Daily newspaper called their Common Fund Index that volition make all the work for you.

It is nil more complicated than that and you can travel back into history as far as you wish and you will see it proved clip after time. You are holding pillory or finances while the market is going up and you are in cash while it is going down. Don’t be fooled by “research” Oregon by any other complicated method. This works.

There is no need to foretell the market. It will state you in simple language what it is doing and whether you should be a buyer or seller.