I like investing, and I like everything about the stock market in particular. But I find that many people get confused and don’t really know what to look for when they have to pay attention to the stock market.
Of course, if you read the news at night, they might tell you what the Dow Jones Industrial Average did that day, whether it went up or down, but that doesn’t really give you an overall view of how the market is. do it on a certain day.
In this article I want to spend a few minutes discussing some other things that you should pay attention to besides the Dow Jones index which will give you a broader picture of what the market has done on a particular day.
So the first thing to consider besides DOW is the S&P 500. This is an index fund consisting of 500 of the best stocks chosen by the good people at Standard and Poors. When people say “Stock Market” many times they refer to the S&P 500. This is a pretty good indicator of what the market is doing as a whole. Also, most evening shows and radio news will mention this index every night.
Next you have to pay attention to TRIN, which is a trading index, because it tries to measure the volume of trades carried out on a particular day. If TRIN moves from above 1.20 to below 70 for any day, it usually means that the stock market has changed to Bullish. On the other hand, if TRIN rises from below.70 to 1.2 then the market has changed to Bearish. TRIN 1.0 means that the market is largely stable throughout the day.
Next you might want to watch activity in the Over-The-Counter market, which is the market of very small companies that trade thin. If it exceeds the common stock market, it might be a sign of a BULL market. Likewise, if the volume is much smaller than the broad market, it might indicate the Bear market.
You also have to keep an eye on the old Quotron changes because it measures the daily percent change for all shares on the New York Stock Exchange with the QCHA index and all shares on the American Stock Exchange with its QACH index. Many mutual funds pay special attention to this index, even more than they do to the Dow Jones index.
And of course you will want to keep an eye on one or two general financial news that day. There are many ways to do this, but my favorite is to read the Wall Street Journal and Financial Times Newspapers every day. The Financial Times is a newspaper from London, but they send every day to major cities in America and every day or every day by postal mail outside the major cities.
Both of these papers are excellent sources for staying up to date on all financial news today. I believe with the advent of the Internet, there are better ways to stay abreast of financial news, but for me I like my daily routine of reading old-fashioned newspapers!
So there you have it, a number of things you must pay attention every day to keep abreast of the stock market and stay informed to protect your investment.