How to Utilize the News Pages in a Bear Market

How to Utilize the News Pages in a Bear Market

Below is a list of ideas that should be helpful in a declining market:

1. Are more corporate earnings reports coming in below estimates?
2. Use the new low list in conjunction with the stock tables to show a stock's % change in volume when it makes a new price low.
3. Check the 90 minigraphs of "Stocks in the News". There will be fewer stocks making new highs and more showing huge increases in volume. Those closing down in price might be selling situations in a bear market, especially if they are not extended too far below price-basing patterns.
4. Notice if there is a shift to defensive securities such as Foods, Supermarkets, Gold, Tobacco, or Utilities. See if many defensive group graphs show up in Friday's newspaper at the bottom of the general market indicators page.
5. What are the weakest industry groups and the former leading groups?
6. Are more stocks consistently underlined in the price tables than are boldfaced?
7. Monitor quarterly earnings reports daily to spot poor reports in stock positions that may need to be sold.
8. Check price tables for companies with relative strength breaking below 70 and Volume % Change up when price is down.
9. Study the daily market averages on the general market indicators page to determine bad market conditions as well as the eventual beginning of the next bull market. Observe the Mutual Fund Index and performance of foreign market averages for further clues. Is
the Fund Index persistently below its 200-day moving average line?
10. Watch for special news items daily on companies, industries, or the economy. And be sure to check the NASDAQ chart.
11. Track weakening stocks that perhaps should be sold.
12. Which sector indexes are the weakest?
13. Save and study the New America page to get ready for the next bull
market.

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