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Breadth/Market Gauge and Bear Market Trading

QuestionsCategory: QuestionsBreadth/Market Gauge and Bear Market Trading
Troy asked 7 years ago
Howdy Pat,  I know you watch the major indices but I wanted to ask if you also use any other gauges of the market to get a sense of the market and any related potential trading changes that may be needed. IBD also includes put/call ratio, but there are also other metrics that could give clues - advance/decline line, % stocks above the 200 day moving average, % stocks above the 40 day (or 50) moving average, new high/new lows, VIX, etc. Of course it is easy to get bogged down in information overload and keeping it simple and focused is key. At any rate, I am wondering what has been useful to you.  You mention in down markets, or bear market is probably more appropriate, that you focus on raising cash and then on trading inverse ETFs to the extent you may trade. Do you do any focusing on industries leading to the down side (opposite of leading industries) and weak stocks in those industries or find it more beneficial to key in on inverse indices ETFs? Thanks!
1 Answers
Avatar photoOwen Staff answered 7 years ago

Hi Troy,
I know you've seen this; I'm just catching up with posting.
Maybe I'll figure out the nuances of this Question/Answer plugin soon so I can better control the video to constrain it from running off the screen. Until then, let the content post; we'll pretty it up later. :-)
https://youtu.be/bDyghmOfx4w