When people refer to "the market", they generally mean the Dow Jones, despite that index's very narrow representation of the stock market. As most know, much of the more robust American companies are not represented in the Dow Jones, but rather in the broader Nasdaq or S&P indices. Nevertheless, the position of the Dow Jones … Continue reading What The Dow Is Telling Us
Month: June 2020
The Significance Of Ranges
Experienced market participants know that stocks spend most of their time in seemingly random ranges. It is only for a short time that they will actively trend up or break down. This is logical since companies will go about their business in a somewhat predictable and systematic way. When something unusual or extraordinary happens, or … Continue reading The Significance Of Ranges
Cyclical Strategies
One of the comments I often address is whether only buying stocks that are making new highs is the best methodology. If you are an active trader, this makes sense because you want to go where the momentum is. While stocks do ebb and flow, it makes sense to be invested in the strongest stocks … Continue reading Cyclical Strategies
The Significance Of Trend
It's been almost 4 months since the initial shock to the stock markets ostensibly caused by the panicked entreaties of health officials. A number of factors contributed to the massive selloff which ensued over the following months based on the sudden introduction of unknowns. The lack of substantiated facts was one factor but also the … Continue reading The Significance Of Trend
