-LSB-...] feel that I should justify the answer a little in the context of the «What to
do in sideways markets» post about Vitaliy Katsenelson «s excellent book «The Little Book of Sideways -LSB-...]
I feel that I should justify the answer a little in the context of the «What to
do in sideways markets» post about Vitaliy Katsenelson «s excellent book «The Little Book of Sideways Markets ``.
It will
do this in a sideways market, and it also has a lot less risk than a stock fund in a declining market.
Not exact matches
My research leads me to believe that the U.S.
markets will continue their
sideways journey over the next decade, much as they
did in the previous decade.
The book walks readers through the fundamentals of investing
in sideways markets, and I think it will help most investors
do well
in what will be an otherwise challenging environment.
Since the stock
market appears to be
in consolidation mode right now (trading
in a
sideways range on lighter volume), it is a good time to
do a review key technical support and resistance levels
in the Nasdaq and S&P 500 indices.
It's
in these
sideways market conditions that traders
do the most damage to themselves.
Do not look for reversal patterns like the Double Top / Bottom
in a
sideways market.
While this can be a good strategy
in a
sideways or bear
market, this strategy
does not work too well for the option writer
in situations such as secular bull
markets involving rapidly rising stock values, or catalysts such as analyst upgrades, surprising positive earnings or unanticipated positive business news etc..
Unfortunately, the
market is not always trending,
in fact it's often said that
markets spend more time consolidating and moving
sideways than they
do in trending conditions.
Certainly, given that the
market has bounced out of this recession faster than any other
in history, we shouldn't be surprised if we
do have another nasty stumble, but the more worrying scenario may be that we drift
sideways from here, and drift for a long time.
«Make sure you have a plan
in place that helps you determine what to
do in up, down and
sideways markets,» Janet writes.