Fifth In A Series"What's The Market Trend?
You need to know the answer before you do anything with stocks. IBD can help.
Every day, IBD's "What's The Market Trend?" page, even at a glance, gives you the best and broadest answer. Invest more time by scrutinizing that page's features.
First things first: Look at the Market Pulse (today on B2), embedded in The Big Picture. Now you know, the market is in a confirmed uptrend. If it weren't, you wouldn't (or shouldn't) be too eager to jump into the market.
Note immediately below the Current Outlook is a running count of distribution days recorded by the major indexes. Distribution days are to the market as heavy trucks are to a rickety old bridge; one too many could cause the whole thing to go down.
On the left side of the page, you'll see the big index daily charts. A picture is worth a thousand words, and these pics show you support and , as well as the long-term 200-day moving average. Pay attention to that line's slope. It helps give you a sense of the market's trend.
You'll find the indexes' Accumulation-Distribution Ratings, and up-down totals. Recent changes in market direction are clearly indicated.
So far you've invested all of about 20 seconds, and you've already learned a lot about the state of the market. Now put aside the crossword puzzle and do some real work.
Read "The Big Picture." Here you'll get a recap of the previous session: the winners, the losers and the key factors driving that session, for good or for bad.
As the name implies, you won't get lost in the market's noise, minutiae and feints. Instead, you'll get the big picture.
Now look at all the juicy stuff under The Big Picture.
• Top 20 Groups (of the past six months) and the Worst 20 Groups (of the past six months).These rankings give you another perspective. They also offer an alternative approach to finding great stocks. Rather than find a high-potential stock and checking out the group to make sure it's solid, go the other way.
These lists also show where these 40 groups were a few weeks ago, so you get a feel for the trend. See the entire table on B7.
• Top Fidelity Sector Funds. Why find out which sectors the managers at mutual fund giant Fidelity are thriving in? It tells you where the institutional dollars — critical to any rally — are flowing.
• Top Sector ETFs. Another great way to see which areas are hot. The best names in each of these sectors likely will be familiar to you.
• Groups With Best % Of New High Stocks. Yet another avenue to zeroing in on the industries that are faring best right now.
Finally, four small tables in the bottom right portion of the page — starting with "IBD 50's Best Price % Change" — present the prior session's standout performances in the manner IBD readers have come to appreciate, by relating price and volume.
In "IBD 50's Best Price % Change," most of these stocks are well-known winners, and most of the big gains appear with solid volume. Now look at the IBD 50's Most Volume % Change list. You may see a repetition of names from the previous list.
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