Some older friends told me about phone service in our community. You’d crank-up Mary, the phone operator. You’d say, “Mary, connect me to my Mom and Dad.” While waiting, Mary would bring you up-to-date on what’s happening in Town. Nothing like, “Jay’s horse got loose yesterday.” No, this would be juicy stuff about so-and-so leaving someone’s house in the morning shadows.
Mary’s gossip created a buzz in Town, but she may have missed the facts. Presumably, financial news comes close to plain and clear reporting with a hint of speculative prognostication. We don’t want Mary’s journalistic methods informing us about the stock or bond markets.
Investor’s Business Daily, in my opinion, offers clear data supported by distinct technical data. William O’Neill learned by watching institutional investors (mutual funds, pension plans, and institutional private money managers). IBD applies that growing body of knowledge to current market events.
Trading volume may be one of the most important, but not the only important, market actions. Others worth considering:
- Trading patterns,
- Changing market leadership,
- Support and resistance lines
- Relative strength
- Earnings and sales momentum
One of my favorite resources is the “Daily Stock Analysis” video (about 1/3 of the way down the page). Watch it, and you’ll develop insights about how markets and individual stock market pricing changes.
