How do you know if the current market is bullish or bearish? How do you know when it reverses?
Investors start selling stocks. Indices goes down and stock prices drop. People start seeing the drop and fears comes in and more sellers start selling.Soon stocks get oversold (or overbought to the upside).Now in a BULLISH market, after being oversold, stocks will rally.In a BEARISH market, after being oversold, expect stocks to drop even further.I look to see what happens when stocks are overbought or oversold. This then tells me if the markets are behaving BULLISH or BEARISH and I adjust my trading accordingly.
What does it mean to be "Bullish" in the stock market? ?
Bull investors pretty much believe in the market rising and base their investing strategies on that. They are optimists. Bear investors try to make money on the thought that the market is falling. They invest in a way to make money from a failing market. Bull-belief in a rising market Bear-belief in a falling market
What will be the overall trend for the US stock markets in 2019, bullish or bearish?
S&P 500 Earnings Growth RateS&P 500 Earnings Growth RateReal Earnings Growth Rate and Real Sales Growth Rate are still going strong. I see no reason on why next year it could be different.Market may get scared, but if it doesn’t go anywhere from here, while growth persist on today’s levels, then it means that the market just got cheaper.Ask yourself what’s going to happen.Some people are so out of touch with the reality of the stock market that they’re permabear since 2011 because they missed the boat and now they hope they can back in at lower prices, or that they think you deserve to lose. Their bearish thesis is something like: “Omg! Have you seen the FED’s balance sheet?!”, or “Omg! Have you seen that the market crashes when interest rates are lifted?!?”, or “Omg! Have you seen Alibaba and Chinese stocks inflating their earnings and committing fraud? China is sooo doomed!!!”.Apart from the point about raising interest rates being worrisome, the other aren’t a problem per se: Why do rising interest rates cause the stock market to decline?If the FED raises rates, then possibly there are shifts in asset allocation and someone my look for the 0.25% additional yield on its bond instead of being long stocks. Raising rates may impact some consumers and hurt some sectors, but ask yourself:Are people going to shop less on Amazon? Are people going to surf less on Facebook or Instagram because of interest rates are higher or worse a recession has hit, and thus making advertisers not doing their job? Are people not going to watch Netflix, because they’re worried about the recession? Are people not going to search links on Google because nobody uses google during a recession?Johnson &Johnson, Pfizer, Merck, who needs drugs, right?Procter & Gamble, Colgate, who needs to shave or shower during a recession, right?AT&T, Verizon? Nobody will use his phone during a recession, right?Most company will make money, grow earnings and sales, *despite* what’s going to happen to the economy.Until earnings & sales growth is robust, you have nothing to fear.Thanks for the ATA
What is short covering in stock markets?
Before understanding about short covering, you must know “Short Sell”.There are two ways of trading in the market.You buy a stock or securities with bullish (Positive) view and sell it. (First Buy and then sell)You sell a stock or securities with bearish (Negative) view and then buy at lower price. This is called short selling. (First sell and then buy)Now, let's understanding what is short covering.Short Covering:When traders are closing their open position (Short Sell) in the market. It's called short covering. The word short covering mostly use in derivative market (F&O). Agressive Short covering happen when prices moving higher instead of going down.Example:You sold 100 shares of ABC company @20 with bearish view. But prices moving higher let say 22 for whatever reason, you are going to cover or close your open position to minimise your losses and get out of itYou sold 100 shares of XYZ company @20 with bearish view. And you square off or close your open position with buying @15. So, you made 500.I hope you are cleared about your query.
Why do people think Iranians are terrorists?
Because people listen to Fox News and believe their propaganda. Of course anyone who is open minded knows that Iranian people are not terrorists.