Latest / Winning With Winans! / Simple Market Indicators Every Investor Should Watch
Transcript
- speaker-0: let me just tell you this: things you're going to want to watch. Very simple things that you as an investor can monitor on your own. There's a gauge I use, I've written a lot about it called the 200-day moving average, which means if you were to take the SP 500 and you take its average for the last 200 days in price, is today's price above or below that average? If it's below, at the end of the month, yeah, I think you need to go on your defenses. You need to maybe think about raising some cash. Just be aware that it happens a lot. And it it doesn't necessarily mean you're gonna instantly go into a horrible bear market that's gonna go down 50%, but it does mean that the market is very weak where it's dropped below where it's been the last 200 days. Also, the overall health of the market, there are certain things you can read in the paper or on social media sites called the advanced decline line. Of the New York Stock Exchange and the Nasdaq, the number of 52-week highs to 52-week lows. Hey, this is common sense. If a market has more advancing stocks than declining stocks, guess what? It's healthy. If you have more stocks hitting 50 52 week highs versus new 52 week lows, that's a healthy market. Keep in mind, I don't care what companies they are that are doing it. It's just that I want to see that the group overall is doing well, or as the doctors would say, that the patient is healthy. Also, keep an eye on volume and also the individual stocks themselves, if they are up, above, or below their 200-day moving average. I just think again, you also want to look at things that might surprise a lot of people, things like margin expansion. You can track this yourself.