| Now is the time to be selective and focus on | | | | predictive market timing signals for upcoming crashes |
| targeted timing of equity investments. There are | | | | and recessions. |
| literally hundreds of market timing signals and tools an | | | | SENTIMENT TOOLS |
| investor can use to time the stock market, here are | | | | Sentiment timing tools gauge the level of fear and |
| 7 of the most popular tools for generating tradable | | | | greed within the investment community and also |
| market timing signals: | | | | analyze overall market breadth trends. Popular |
| TECHNICAL ANALYSIS | | | | sentiment tools you can use to time the market |
| Using technical analysis is probably one of the most | | | | include NYSE Advance Decline Line, McLellan |
| popular market timing signals investors use to time | | | | Summation Index, and the Volatility Index (VIX). |
| their trades. There are literally hundreds of specific | | | | SEASONALITY |
| technical analysis formulas and tools one can follow, | | | | Statistical analysis of seasonality trends and cycles |
| but they all fall within a few categories of focus. In a | | | | within the stock market can also help with your |
| nutshell, technical analysis studies the movement and | | | | trading success. Certain months of the trading |
| change in a stock price and its volume. Hundreds of | | | | calendar have a statistically higher probability of gains |
| formulas have been developed that measure | | | | than other months. |
| velocity, momentum, and price change averages, and | | | | SOFTWARE |
| charting of these tools is an easy way to visualize | | | | There are many great software solutions available |
| these signals. The most simple and popular technical | | | | that can help with your stock market trading success. |
| analysis tool is the 200-day moving average price of | | | | Many stock charting programs offer graphing and |
| a stock or index. If the price of a stock is above its | | | | analysis of popular market timing tools and indicators |
| 200-day average it is considering in a long-term | | | | right out of the box. Most also offer custom |
| uptrend. | | | | programming options so that you can create your |
| FUNDAMENTAL ANALYSIS | | | | own custom timing indicators, and have the ability to |
| More popular with the Wall Street crowd, | | | | back test trading results. |
| fundamental analysis deals with researching the | | | | SCREENERS |
| financial health of a company in relation to its stock | | | | Screening tools and filters are a great way to quickly |
| price. Again, hundreds of formulas and ratios have | | | | develop a potential list of trading candidates. There |
| been developed to analyze stocks, and many of | | | | are hundreds of stock screeners available and you |
| these can be used to screen, filter, sort and time | | | | can screen by fundamental data, valuation data, |
| your equity investments. One of the most popular | | | | technical analysis readings, and just about any type |
| fundamental signal tools is the P/E ratio, which is a | | | | of market timing data point you can imagine. |
| stocks price divided by its earnings per share. | | | | CONCLUSION |
| ECONOMIC REPORTS | | | | We've just scratched the surface explaining 7 of the |
| The release of economic data moves the market, | | | | most popular categories of market timing indicators |
| and learning how to read these economic data points | | | | you can use to improve your trading results. Within |
| and to anticipate trends in economic data can give | | | | each category you can find literally hundreds of |
| you an edge with your market investments. The | | | | types of investment timing tools. For those that |
| Yield Curve is one of the most popular economic | | | | want more in-depth information on how to learn |
| signals investors can use to time the markets on a | | | | market timing strategies that work, we suggest you |
| long-term basis. The Yield Curve is the slope of the | | | | start reading and researching those types of timing |
| spread between 3-month interest rates and 10-year | | | | strategies that appeal and fit with your natural |
| treasuries and is one of the most powerful and | | | | trading style. |