NASDAQ Market Exchange

Steven Beley's

The New York Stock Exchange

The stock markets are one of the most changeable entities I know. There is know rhyme or reason why the stock prices go the way the go. There are two shown on the screen and the others include Buy on the rumor sell on the news and A Dead Cat Bounce.

Santa Clause Effect

Historically, the stock market takes off the last four days of the year and into the first two of the New Year. On average, this "Santa Claus Rally" is good for 1.7% on the S&P 500, according to the Stock Trader's Almanac.

The Truth

If the economy is soaring and the Fed has just raised interest rates at it's just before it's Christmas meeting (Tuesday before Christmas) more then the market is willing to tolerate. There is a good chance that stocks will come tumbling down. You are a gambler.

Super Bowl Effect

According to the unconventional but surprisingly accurate indicator, stocks rise when a team from the National Football Conference or one from the pre-1970 National Football League wins the Super Bowl. It's worked for 26 of 29 Super Bowls. WOW!!! What a record according to the Motley Fool.

The Truth

You are a gambler looking for a place to lose your money or a justification on why you lost your money.A pure gambling technique at it's finest.

Buy on the rumor sell on the news

If it is rumored that a company might have a good earnings report the stock will go up because people are buying. Then the news comes out as expected and since all the buyers are now sellers because there is know other reason to hold the stock in the short term.

The Truth

When good news about a stock comes out the stock goes down but when there is bad news about a stock the stock price goes up. It's not about market timing but about time in the market.

A Dead Cat Bounce

Every once in a while I will here this saying on CNBC but never the meaning. It means when a companies stock or the market as a whole is headed for a fall, the stock goes up a little an then heads straight down for a prolonged period of time or in short even a dead cat bounces.

The Truth

If there is really bad news then the stock will fall and keep falling to zero. So when you get your money into the stock the cat has bounced and so will your checks.

I leave you with one more saying.

Animals in the Stock Market

National Homeland Security Knowledgebase