In investing, we would like to know the overall trend of the market. Is the market...

In investing, we would like to know the overall trend of the market. Is the market trending up? Or, is it trending down? If the market is trending up, we want to be invested in stocks or Exchange Traded Funds (ETFs), such as DIA, SPY, QQQ, SSO, DDM, or QLD to name several. If the market is trending down, we really do not want to be in stocks, because we all know too well what happens to stock prices in a down market. In a down market, the best place to be is in a money-market fund or inverse Exchange Traded Funds (ETFs), such as DOG, DXD, SDS or QID to name several. Now, how does one determine if the market is trending up or down?

Expert Solution

To determine if the market is trending up or down, one needs to look at the long-term technical charts of the broad market. Broad market here is defined as a broad-based index indicator such as S&P 500, Dow Jones Industrial Average etc.

A study of technical charts shows that there are 3 kinds of trends - primary trends, secondary trends and short-term trends.

Primary trends last from several months to several years. They represent whether a market is in a bull or bear phase. A primary trend is assumed to be intact until a definite sign of reversal is seen. A long-term primary uptrend is a bull market whereas a long-term primary uptrend is a bear market

Secondary trends last from a few weeks to a few months. They run counter to the primary trend.

Short-term trends are noise, and last only a few days.

To determine if the market is trending up or down, the primary trend needs to be identified, and the secondary/short-term trends need to be filtered out.

jeff jeffy answered 9 months ago

The manager of a Farmer John Super Market would like to know if there is a...

The manager of a Farmer John Super Market would like to know if there is a preference for the day of the week on which customers do their shopping. A sample of 420 families revealed the following. At he 0.05 significance level, is there a difference in the proportion of customers that prefer each day of the week? Days of the week Number of persons Monday 20 Tuesday 30 Wednesday 20 Thursday 60 Friday 80 Saturday 130 Sunday 80 a....

You begin investing in your retirement and would like to know how many years it will...

You begin investing in your retirement and would like to know how many years it will take to have 1,000,000 saved in inflation adjusted dollars. Your retirement savings currently are: $0 Assume all investments grow tax-deferred and at the same overall rate. 4,000 Invested annually 0.1000 Annual compounded gross rate of return (blended for stocks, bonds, etc.) How many FEWER years will it take to save $1,000,000 for retirement if you adjust the following: 50000 Initial retirement savings/assets (add these...

3. We would like to know whether, on average, students learn better in a self-paced or...

3. We would like to know whether, on average, students learn better in a self-paced or in an instructor-paced computer learning environment. We randomly assigned 40 BL131 students to self-paced sessions and a different 40 students to an instructor-paced sessions for one unit and recorded the exam scores for that unit. The two-sided p-value for the comparison was 0.01. alpha = 0.05. A) State your conclusion in context and say why you reached that conclusion. We would like to know...

We would like to know: "What percentage of college students drink alcohol every day?" In a...

We would like to know: "What percentage of college students drink alcohol every day?" In a random sample of 500 students, 75 said they drink alcohol every day. Use the data to construct a 95% confidence interval to answer to the question. You MUST show your work to receive full credit.

Imagine the Raiders football team would like to move to Sacramento, CA. While we can't know...

Imagine the Raiders football team would like to move to Sacramento, CA. While we can't know the overall effect on jobs, we can make assumptions based on data. a) Explain three reasons why building a stadium for the Raiders could results in a net benefit or cost for Sacramento. At least one reason should be a positive/pro, one should be negative/against. b) If the stadium is built, what can we expect to happen to the local labor market? Explain and...

Describe your process of selecting the current trend or solution that you would like to implement...

Describe your process of selecting the current trend or solution that you would like to implement within your organization. Share at least 3 of the most useful resources that you have found for identifying current trends in the health care management industry. Identify at least 2 resources that you reviewed but chose not to use. Indicate how you decided what was a good resource and what was not. Use a narrative format in your posts, not bullet points. PLEASE USE...

Often we would like to make the user think we like him/her so we use a...

Often we would like to make the user think we like him/her so we use a friendly prompt to get them to decide if they want to continue a loop. One can make a sentinel using an integer value outside of the expected input range but a more delightful way is to ask politely if: System.out.println("Do you want to play again?); In order to do this we will need a scanner and a do-while loop. For the scanner sometimes the...

I would just like to know if ANOVA would be the correct test to use for...

I would just like to know if ANOVA would be the correct test to use for the following problem below? Fancy Fish, a fine dining upscale restaurant in Northridge, California and 2016 Open Table Diners’ Choice award winner, is enjoying its eighteenth season of providing delectable food, exceptional service, and beautiful outdoor dining experiences. “Saturday - Half-off Bottled Wine Night” has made Fancy Fish one of the San Fernando Valley’s favorite restaurants. Every Saturday night, guests can enjoy half-off every...

Hi, I would like to know which method should we use when doing physics calculations? Acceleration...

Hi, I would like to know which method should we use when doing physics calculations? Acceleration = Speed / Time Let's say we are given 5 measurements of speed and time. S1, S2, S3, S4, S5 and T1,T2,T3,T4,T5. We are given two methods. 1) Find the mean of speed and time, and find their respective standard deviation and standard error. E.g. speed = 0.5 +- 0.2 m/s and 3 +- 0.2 s, substituting into the acceleration formula and doing the...

A firm would like to know the proportion of it employees that expect to receive a...

A firm would like to know the proportion of it employees that expect to receive a raise within the next year the firm survey is 150 employees and finds that 60 expect to raise construct a 90% confidence interval for the population proportion a) what is the sample proportion b) State the critical value c) calculate the margin of error d) State the lower and upper values for the confidence interval

Question