Securities that have been actively traded on a particular stock exchange during a particular period. Active stocks are characterized by high trading volumes and frequent price movements, which make them attractive for traders looking for opportunities in market trends.
A barometer is a selective compilation of economic and market data designed to represent larger trends. Common barometers include consumer spending, housing starts, interest rates, and prominent stock market indices like the Dow Jones Industrial Average and Standard & Poor's 500 Stock Index.
A bear market is a financial term used to describe a market where the prices of securities are falling or are expected to fall. This state of the market is often characterized by a decline of at least 20% from recent highs.
A bull market signifies a prolonged rise in the price of stocks, commodities, or bonds. It reflects investor optimism and confidence, often fueled by strong economic indicators and corporate earnings.
Contrarian investing is a strategy that involves going against prevailing market trends by buying assets that are performing poorly and selling those that are performing well. Contrarian investors believe that markets often overreact to news and developments, leading to opportunities for buying low and selling high.
Cyclical demand refers to patterns of consumer demand for goods and services that vary cyclically over time, often in response to external factors such as seasons, economic conditions, or business cycles.
Dow Theory is a theory that a major trend in the stock market must be confirmed by similar movements in the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). According to this theory, a significant trend is not confirmed until both Dow Jones indexes reach new highs or lows; if they do not, the market is likely to fall back to its previous trading range.
A down tick occurs when a security is sold at a price lower than its most recent preceding sale price. This event is also referred to as a 'minus tick.'
Hammering the market refers to intense selling of stocks by speculators who believe that prices are inflated and the market is about to drop.
A term used to describe newly issued stock that rises quickly in price, often due to strong interest and demand from investors.
An inferior good is a type of product for which demand decreases as the income of the consumers rises, leading to a greater consumption of more expensive alternatives.
A 'leader' in various contexts can signify a stock group forefronting market trends or a dominant product in its industry.
Market Analysis is the comprehensive study designed to define a company's current or potential markets, forecast their directions, and decide how to expand the company's share and exploit any new trends.
Marketing research involves the systematic gathering, recording, and analyzing of data related to the movement of goods and services from producer to consumer. It covers market analysis, product research, and consumer research.
Stock prices that have reached their highest or lowest levels within the past year. This data is often published in newspapers and financial websites to indicate companies experiencing significant price changes.
A paradigm shift refers to a fundamental change in a model or pattern that has been nearly universally accepted. It often marks a significant transformation in the way processes or concepts are understood or executed.
The Presidential Election Cycle Theory posits that major stock market moves are influenced by the four-year presidential election cycle, with stocks expected to rise in anticipation of economic recovery efforts by the incumbent president before election day.
A marked rise in the price of a security, commodity future, or market after a period of decline or sideways movement.
A sales forecast is an estimate of future sales volumes and revenue. It is usually based on past trends and considers current and future directions, such as government regulations, economic forecasts, and industry conditions.
Measures of the bullish or bearish mood of investors. Many technical analysts look at these indicators as contrary indicators; that is, when most investors are bullish, the market is about to drop, and when most are bearish, the market is about to rise.
A position held by a dealer in securities, commodities, currencies, etc., where sales exceed holdings because the dealer expects prices to fall, enabling the shorts to be covered at a profit. Contrasts with a long position.
Technical analysis is a method of evaluating securities and commodities by analyzing statistics generated by market activity, such as past prices and trading volume. It uses charts and other tools to identify patterns and trends that may predict future price movements.
An upward or downward price movement in a security's trades. Technical analysts watch the tick of a stock's successive up or down moves to get a feel of the stock's price trend.
Topping out is a term used in finance to denote the point at which a market or security is at the end of a period of rising prices and is expected to either remain stable or decline. This term is often associated with market peaks and potential future downturns.
An uptrend refers to the general upward direction in the price of a stock, bond, commodity futures contract, or overall market, characterized by higher highs and higher lows over a period.
