| Sometimes I wonder if stock market investing is | | | | happening and when they do see it happen the first |
| more science or art. Do you ever wonder that? It | | | | thing they do is sell short. |
| seems like the people who know in advance what | | | | Selling short is when they borrow shares and sell |
| the market is going to do (and take appropriate | | | | them in the hope that those same shares will decline |
| action to make money off of that) seem to work as | | | | in value at which point they can buy them back at |
| if they have a crystal ball in front of them. I'm not | | | | cheaper costs and return them to those whom they |
| sure if it's voodoo or insider trading or what, but | | | | borrowed them from... pocketing the difference in |
| some people just seem to know... do you know | | | | price as profit. |
| what I mean? | | | | When member short sales exceed 87% of all short |
| For instance, how come some people just know | | | | sales within a given week, then you have a pretty |
| when the stock market is about to crash? How do | | | | good idea that the market is about to turn for the |
| these people get their money out in time so that | | | | worse. You can find this information in Barrons and in |
| they don't lose all the value that they have built up? | | | | the Wall Street Journal and through many private |
| Well the answer may be easier than you think. It's | | | | financial newsletters. |
| not a crystal ball, and it's not voodoo... and it's | | | | The next indicator is to watch the for Federal |
| certainly not insider trading! | | | | Reserve Bank for an interest rate increase. Stocks |
| In this article today I'm going to give you a few | | | | are very sensitive when it comes to the Federal |
| indicators that you can use to determine whether | | | | Reserve and especially when it comes to interest |
| the stock market is about to take a turn for the | | | | rates. Low interest rates means a lot of stock |
| worse. These indicators aren't the gospel truth, but | | | | market activity and precludes bull market advances |
| they will give you a heads up and an idea that the | | | | usually. On the other hand, rising interest rates usually |
| market is about to take a turn for the worse. | | | | restricts stock market investing and causes the |
| The first thing to look out for is heavy New York | | | | market to take a downturn. |
| Stock Exchange member short selling. Members are | | | | Finally watch for heavy stock churning. When people |
| professional investors who spend their time day in | | | | buy and sell lots of stock, it's an indicator that the |
| and day out on the floor of the exchange investing | | | | market is becoming unstable and therefore likely to |
| for themselves and for their clients. These guys and | | | | take a downturn. You can watch volume levels fairly |
| girls have a fairly strong record of being able to | | | | easily online. |
| determine when the market is about to turn... I won't | | | | So there you have several indicators that you can |
| go so far as to say that they cause the market to | | | | use to determine when it may be time to sell your |
| turn, but they're certainly the first ones to see it | | | | stocks before they start falling. |