Investment success can depend upon catching the right idea at the right time, or by acting boldly when others are cowering in fear. October in the markets provides an opportunity to put one of these approaches to the test.
The stock market moves in advance of the formal reports of economic activity.
The essential price information about securities is available to everybody who is interested in the market. They get the information at the same time, and everybody is able to buy and sell at the same time when the market is open. So where are the market secrets?
When the Dow index moves below the 200 day moving average many people believe it points to a significant change in the market trend. It sounds an attractive idea but closer investigation shows it is not that useful. The Dow oscillated around the value of the 200-day moving average in 2007 and 2008. Its collapse started after the index moved below the 200 day moving average in 2008 January but the index moved above the 200 day average in 2008 April. In May 2008 it fell below the 200 day average again and stayed there until July 2009.
Three important events occurred in global markets last week. They suggest a significant economic change is developing.
A courtyard house next to Beihai Park that was once part of a Qing dynasty palace is being advertised online for 420 million yuan and attracting the interest of State-owned enterprises.
Name | Value | Change | Time |
Shanghai | -0.58% | Thur | 2,794.27 |
Shenzhen | -0.26% | Thur | 12,392.93 |
HSI | +0.06% | Thur | 22,530.18 |
NIKKEI | -0.11% | Thur | 10,071.14 |
Dow | +0.74% | Thur | 12,719.49 |
Nasdaq | +1.36% | Thur | 2,872.66 |