It means you’re in the market for a good long-term investment or business.
If you see any signs of a trend, you should take it as a “buy.” But beware: there are also many signs that you may be overlooking. Here are some examples:
Trends can change significantly.
Futures contracts expire for a few months, or even the year. With those few months on your calendar, you’ll need to make sure there is ample time to sell your stock at the new closing price that you see. If you see a big price drop in the short-term, you’ll need to sell quickly.
This chart by Bloomberg shows the 10-year price that it would sell at if it was buying at the new closing price in August 2013.
The market moves faster than you can keep up, creating a rush to buy at the top.
When an important piece of news breaks, you feel a rush to buy. This chart from The Wall Street Journal shows what happens when your stock sells off.
You may even get impatient because your stock isn’t where you want it to be.
The good news, as always, is that the market moves at your own pace. If you have a strong long-term investment, you can pick up shares when you need to. But if you’ve been taking profits and are losing money or having a tough time keeping it in stocks, check back in the next week or so for a “buy.”
If you are taking profits for your share, then you are also in a period of time when the market is going through a phase, usually where it’s “high volume.”
This chart by CNNMoney shows the trend lines from the latest stock market data available from May to July 2014.
In other words, some stocks are soaring and others are trading far below their highs.
In some cases, companies have come to the brink of collapse.
On Thursday morning, Citigroup Inc (C.N) made headlines when they announced they would soon default over $20.4 billion in credit card loans and a number of other products. This would be the most recent in a string of bad financial news for the giant financial services firm.
On Friday, American Express Co (AXP) said it is also expected to file for bankruptcy.
All of these developments, in a matter of days, would be cause for concern, especially if you’re in a market that
position trading, bullish bears review, swing-trade-stocks.com review, thinkorswim swing trade setup, swing in stock market