The Market Cap by Investors Alley

The Market Cap by Investors Alley

This is an outstanding website to visit often for stock market news and advice.  In an earlier blog today, I featured an article at www.investorsalley.com by Brett Eversole where he put a new definition on what constitutes a bear market.  He did extensive research for the stock market years between 1953 and today to determine how we should look at bear markets.  Brett believes a bear market is a decline of 15% rather than the usual 20%, and a bear market can be in a non-recession period.  This means the next stock market decline could be rather shallow, and the economy would not be in a recession.  See my previous blog for more information, or read the full article at the links above.

As for how to handle your investments during an uncertain period, I highly recommend Chris Ciovacco's website, www.ciovaccocapital.com where Chris often discusses market strategy in free articles where he usually backs up his arguments with stock market charts.  For example, he presented one article recently where he used a 20-day EMA line to tell you whether to be in or out of the market.  If the S&P 500 is above the 20-day EMA line and the slope of the line is positive, then you should be 100% invested in the stock market.  Visit this website often for good technical analysis and sound advice on stocks.