Market Direction remains the single most important factor in profiting from stocks. Understanding how to interpret market direction means learning how to profit from market direction. It does not matter whether you are into options trading, stock trading or buy and hold. Understanding Market direction in the end will determine how well your trades and investing will do.
This is my index page of all my market direction articles that delve deeper into understanding Market direction and learning how to profit from a better understanding of the importance of market direction knowledge. I started studying market direction investing in 1973 when I was considerably younger than today. I have stayed with both market direction technical analysis and market direction trading since that time. Despite every market environment I have experienced which includes severe bear markets, wars, oil embargoes, terrorist attacks, housing bubbles, stock bubbles, bond bubbles and economic and political crisis I have found that having confidence in my ability to judge market direction assists in profiting from my trades and removes emotion from the trade cycle.
Market Direction Index Of Articles
To read an article select the title.
Market Direction Articles from 2014
Dec 10, 2014 – This article looks at the 6-10-12-20 strategy to who how to make big profits using the Ultra ETFs during periods of pullbacks in market direction.
Oct 15, 2014 – The spy put options are an incredible way to enjoy truly enormous profits in market downturns and corrections. This article looks at a trade in the SPY PUT Options to show how by following the trend I can earn significant profits while at the same time enjoy a high degree of protection for my overall portfolio. The returns from the spy put options speak for themselves. To trade it successfully means understanding the signals and “obeying” them. This is a strrategy discussion of the SPX and SPY which shows how I hedge my entire portfolio through the SPY Put Options.
May 22, 2014 – There are many indexes to watch when trading with the market direction, either up or down. The Russell 2000 which covers 2000 small to mid cap stocks is an exceptional tool to use to understand market direction.
Mar 28, 2014 – With stock markets in 2014 caught in choppy trading action, the professional stock investors are out in force manipulating stocks to provide profit opportunities. As a small investors there is nothing I can do about this. I can though learn to watch for the signals and enjoy profits thanks to these pros.
Mar 25, 2014 – There is one overall driving force behind market direction moving higher and staying higher. That force is revenue growth. Companies must continue to generate better returns annually to continue to boost their stock. While investing is very much driven by emotion, the longer term trend is always controlled by revenue growth. Often consumer confidence numbers provide a clue but I don’t believe much in these types of numbers, only revenue.
Mar 09, 2014 – When stocks rally hard they create a strong overbought condition. This often leads to whipsaws and high volatility. This article looks at how to profit through trading the dips in market direction through a simple strategy that not only gives an entry point, but keeps capital in use often out of harm’s way.
Mar 03, 2014 – There are often catalysts that change the market direction and one of the strongest ones is the sentiment of investors.
Feb 27, 2014 – With the market sitting at all-time highs and yet trending sideways the media is filled with articles comparing 1929 with 2014. The similarities are not even striking and here is why.
Feb 26, 2014 – Before a correction there are many warnings signs. It is rare when a market collapses without any sign. This article looks at the Dow Index Warning Signs.
Feb 19, 2014 – When trading the market direction it is important to understand the market environment itself. The conditions in which we are investing in the trend of the market can actually be easily understood if investors understand what drives the market and what signals to watch for.
Market Direction Articles from 2013
Jul 07, 2013 – When investing in risky assets like stocks investors are often tempted to buy a stock and hope for the best. Long-term investing is believed by many to be the best way for the average investor to earn reasonable returns while controlling to a degree, risk. I do not believe this works. Instead I use a system that I learned decades ago which simply indicates when it is best to go long on stocks and when profits should be taken.
Mar 06, 2013 – There are many times when stock markets enter periods of uncertainty. These can be in both bull and bear markets and can include highly volatile stock markets and periods of very low volatility. I often indicate that I am turning to cautious investing during those periods. In this two part article I look at what is meant by cautious investing and how it can aid an investor in staying focused on profits while working to protect stock and option positions.
Mar 07, 2013 – This article looks at the pros and cons of using a stop-loss when trading against the stock market direction. It discusses the use of a trailing stop and mathematical based stops to profit from following a market move higher or lower to lock in profits before the market changes direction.
Mar 07, 2013 – Unemployment statistics play a large role in stock market direction. This article looks at how to apply unemployment statistics to assist in predicting market movements.
Feb 23, 2013 – It is impossible to predict market direction further out more than a few days at most. There are too many factors that affect stock markets and investor sentiment to make any kind of market prediction accurate. Instead consider looking back in history to view other periods. Then consider that having strategies to profit in both up and down markets will make sure that your portfolio is compounding no matter what the market direction may be.
Feb 18, 2013 – When studying market direction there are often other indexes that can be used to assist in understanding which direction the markets will be moving. Particularly when a market is trending sideways, many technical indicators will be mixed making a clear direction difficult to spot. Instead consider using other index type tools such as the Russell 2000 ETF (symbol is IWM) which follows 2000 mid-cap companies and is often a good predictor of the direction the markets are heading.
Feb 08, 2013 – Studying the pump and dump methods used by many large institutional traders smaller investors can understand better the reasons behind a market direction movement as the method of pumping up stocks and then dumping them on other investors is as common today as it was over a 100 years ago. This method of promoting stocks is used in everything from penny stocks to the bluest blue chip stock. Knowing what to look for can assist investors in understanding how to avoid being caught in their game.
Feb 03, 2013 – When investing in stocks consider joining the ranks of the wolf and hunt for bargains and opportunities in every market condition, up, down or sideways. This unique article looks at a different mentality towards investing which has different benefits than the usual bull or bear investor.
Jan 30, 2013 – Investors who spend a few seconds each day to glance at the VIX Index can learn a lot about Risk On and Risk Off investing to judge market direction. This article looks at how the VIX Index can be used to assist in knowing when to get cautious and when to be fully invested.
Market Direction Articles from 2012
Jan 26, 2013 – Judging market direction is important, but so is knowing what strategy needs to used to profit from the market direction movements and when to enter and exit trades. Trading against market direction may seem difficult but by understanding how to select the proper strategy, investors can easily profit from market direction trading in up, down and sideways markets.
Jan 22, 2013 – The Ultimate Oscillator is a terrific technical tool that studies momentum to predict future move in market direction. Through proper understanding of the Ultimate Oscillator an investor can learn what to look for to close positions or purchase protection to safeguard gains and protect capital.
Jan 19, 2013 – When learning about Market Direction investors can improve their timing by learning to understand the signs from the VIX Index. The VIX Index is an incredibly important volatility indicator that can warn investors when to consider caution and when to remain invested.
Jun 02, 2012 – Another interesting market direction predictor is the commodity rich Toronto Stock Exchange. This is another highly effective method for timing when to get out of long positions ahead of a correction.
Years ago I found a system of timing when to expect the market direction to turn down and to turn back up based on the USA Weekly Initial Unemployment Insurance Claims. This system of market timing is not only effective but is also amazingly accurate.
Dec 30, 2012 – Another article on the VIX Index. This article explains a simple but effective strategy to learn when to enter and exit positions based on an understanding of what the VIX Index is advising investors.
Apr 15, 2012 – The Ultimate Oscillator is an intriguing momentum tool that I use daily on both the market direction charts and on stock charts. But the Ultimate Oscillator can be used effective to also indicate to investors when it is time to exit long positions or place protection against positions.
Market Direction Articles from 2011
Dec 13, 2011 – The debate on the merits of Technical Analysis rages on among analysts and I don’t actually understand why. I believe it is because most do not understand how to use technical analysis when predicting market direction for trading.
Dec 07, 2011 – The Ultimate Oscillator is an excellent technical tool for helping to remove emotion from trading the market direction.
Dec 02, 2011 – This article looks at the value of combining market direction technical indicators to assist in a clearer understanding of the direction stocks markets are taking.
Nov 29, 2011 – Besides market timing technical indicators, economic indicators can have a profound effect on market direction. This article looks at Case Schiller and the impact housing continues to have on the direction of the stock markets.
Nov 16, 2011 – Sometimes ratings agencies like Moodys, S&P or Fitch can have dramatic effects on market direction.
Nov 15, 2011 – There are two thoughts on the January effect. The first is that January’s are poor because investors realign their portfolios in late December. The other is that when January’s are good, market direction for the rest of the year is higher.
Nov 11, 2011 – There are many different technical ways to determine market direction. Wedge patterns are commonly used. Here is how to apply and read one.
Nov 05, 2011 – There are a lot of different market timing systems, all designed to try to profit by predicting with accuracy market direction. This article studies the background and market timing system selection process.
Oct 31, 2011 – I have been investing a long time and this article looks at the great bear market of 1974 and compares that market direction with the decline of the markets in 2011.
Oct 28, 2011 – This article shows again that history can be a powerful weapon in benefiting from trading market direction.
Oct 24, 2011 – The key to profiting through Put Selling bear markets is understanding and having confidence in predicting market direction.
Oct 28, 2011 – In this article I look back at October 1974 and how the present market can often rely on history as a gauge to understand and profit from trading with confidence in the market direction.
Oct 20, 2011 – Can the VIX Index assist investors in understanding market direction?
Oct 13, 2011 – The collapse of the stock markets in 2008 can teach a lot of lessons to investors about trading against market direction trends.
Oct 04, 2011 – When stock markets break support levels there are advanced warning signs that the market direction will turn down.
Sep 29, 2011 – When stock markets gap open whether up or down they are normally telling investors something important about market direction.
Sep 20, 2011 – This interesting article looks at the 3 stages of sovereign debt and default and its impact of stocks markets.
Sep 09, 2011 – By reflecting on past market crashes an investor can learn a lot about present market direction and how to prepare for future crashes.
Aug 02, 2011 – This article reflects on the expectation of a bounce in market direction and how to prepare to profit from what may be a strong but short-term bounce in stock markets.
Aug 01, 2011 – This article is well worth reading. While it studies the reasons for the decline of market direction in August 2011, this article lays a basis for other investors to understand what makes up a bear market and why spotting one is well worth the time and effort to profit from the change in market direction from up to down.
Aug 12, 2011 – Whipsaws in the market are common place when selling and buying are heavier. This article from August 11 2011 looks at the market whipsaws that investors were being confronted with and how profits were being made due to the whipsaws.
Aug 09, 2011 – Another article from August 2011 which looks at a big 600 plus day drop and why analysts are often wrong. Investors can learn a lot from studying big declines in market direction and how to profit from both up and down markets.