Taking a look at different indexes in the stock market helps us make decisions on how we might trade. I like to look at the broad market because big changes in the stock market are caused by the flow of institutional money, also referred to as \u201csmart money.\u201d<\/p>\n
Institutions tend to buy sectors rather than smaller stocks, so it is important to see how the market is impacted by those trades. Today we\u2019re going to compare a few different indexes to gain some insight into how we might trade this week.<\/p>\n
First, let\u2019s look at the Dow Jones. It doesn\u2019t look at the market quite as broadly as some other indexes, but many people still use it as a gauge. There are subtle differences between the Dow Jones and the Broad Market, although they generally appear very similar.<\/p>\n
Esta semana, el Dow muestra varios m\u00ednimos y m\u00e1ximos m\u00e1s bajos, mientras que el mercado general presenta algunos dobles fondos y triples fondos. El Dow es menos resistente en comparaci\u00f3n.<\/p>\n
Uno de los \u00edndices que ha liderado el mercado en los \u00faltimos a\u00f1os es el Russell 2000. Ha liderado el mercado porque ha alcanzado nuevos m\u00e1ximos antes que el S&P y el Dow Jones. Esta semana, el Russell 2000 y el Dow tienen un aspecto bastante similar. La \u00fanica diferencia real a destacar es que el Russell 2000 tiene un m\u00e1ximo m\u00e1s bajo.<\/p>\n
Comparing each of these indexes helps us see if anyone is really leading the market. Currently, it doesn\u2019t appear that anyone is.<\/p>\n
Hace unas semanas, predecir el mercado era bastante sencillo. En las dos \u00faltimas semanas, el mercado ha sido m\u00e1s bien un batiburrillo. Cuando el mercado tiene este aspecto, muchos operadores encuentran un canal entre el soporte y la resistencia para operar. Compran cuando est\u00e1 bajo con la esperanza de que puedan cogerlo en la subida.<\/p>\n
I often try to put my entries above resistance or below support if I\u2019m going short. We would want to go long if the market were to break into some new highs.<\/p>\n
Es importante ser consciente de que cuando el mercado comienza a consolidarse, como muestran los \u00edndices esta semana, generalmente significa que pronto se romper\u00e1. Dentro de este batiburrillo, es \u00fatil mirar el mercado desde una perspectiva m\u00e1s amplia para saber si es bajista o alcista.<\/p>\n
Si se observan los \u00edndices del mercado desde una perspectiva semanal, se observa que es ligeramente alcista.<\/p>\n
The key to trading in a mishmash like we have this week is to put in some trade both ways. I will likely stick to my standby: I\u2019ll have some entries, targets and exits on the upside where I\u2019ll have minimal potential loss; and I\u2019ll have some entries, targets and exits on the downside where I can keep my losses to a minimum.<\/p>\n
We\u2019ll keep an eye on the news and see if this market can gain new highs or drop below some support or resistance points in the coming weeks.<\/p>","protected":false},"excerpt":{"rendered":"
Taking a look at different indexes in the stock market helps us make decisions on how we might trade. I like to look at the broad market because big changes in the stock market are caused by the flow of institutional money, also referred to as \u201csmart money.\u201d Institutions tend to buy sectors rather than […]<\/p>\n","protected":false},"author":16,"featured_media":7271,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"video","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[98,108],"tags":[116,118,115,87],"post_folder":[],"class_list":["post-795","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-post-format-video","category-what-is-new","tag-broad-market-review","tag-dow-jones","tag-entrepreneurship","tag-stock-market","post_format-post-format-video"],"acf":[],"yoast_head":"\n