Tuesday, July 20, 2010

IBD Market Outlook

Tags

One of the things that I do on a daily basis is check the IBD market outlook. You want to check this daily because it tells you what the professional editors at the Investor's Business Daily view the general market direction. The "M" in CANSLIM says only to invest when the market is in an uptrend. This is because studies have shown that three out of four stocks follow the overall market trend. Because of this, it's important to steer clear of new buys when the market turns down and liquidate your current positions. Otherwise, your stocks will most likely go down. Preservation of capital is key and the market outlook is an important factor in determining your decisions each day.

You can find this every day in the Big Picture column. There's a little box there called the IBD Market Pulse. The current outlook can be found here each day. It also includes information regarding the days current action, leading stocks up and down in volume and whether there are any distribution days building up on the indexes.

I always make note of the current outlook and then also do a couple of other things. The first thing I do is watch the IBD TV Market wrap to get a walk through of the days action on each index. Then I check out the How's The Market page for stock charts of each of the indexes. On this page, you also find many other market information like leading industry groups, other major indexes, put and call ratio and more.

As your familiarity with the market grows, you'll no doubt grow more comfortable determining market direction on your own. But the great thing about the Market Pulse is the fact that when the market is in a confirmed uptrend, it keeps track of distribution days. This is kind of hassle to do on your own. It's almost like why bother, it's already done for you and one of the major reasons to subscribe to the paper each day.

As always, I highly recommend making reviewing the IBD Market Outlook to your stock market investing routine.

Related Article

Stock Market Investing Today

Stock Market Investing Today - Smart Investing.


EmoticonEmoticon