Stock Trend Investing

Are you falling of a cliff as well or do you use systematic and objective analysis?

Are you buying the dip or selling all your funds? Are you paralyzed by fear when markets drop more than 4% in a single day or do you stay calm and relaxed? How do you decide if you see this sell-off as a temporary correction or the beginning of a longer bear market?

Anybody, who tells you that he is absolutely certain that this is a correction or the beginning of a bear market, is lying or does not know what he talks about.

Nobody knows the future. But objective analysis can give us an indication of what will most likely follow.

After a hectic month, with

• a US debt default discussion,
• a rescue package for Greece and
• signs of slower than expected economic growth

The long-term trend signals for the S&P 500 are all unchanged compared to last month.

They are all pointing up.

But this is a time that shows clearly that looking at the long-term trend signals for one market index like the S&P 500 is not enough.

To see where the trend is going for the overall market, you better follow a number of different market indices.

At this moment we get for example the first warnings from the NASDAQ and NYSE indices for the start of a potential downturn.

Long-term trend signals for many emerging markets are pointing down. And Europe starts coloring red as well.