The ability to accurately evaluate the condition and direction of the general market is another skill generally required to become a successful investor
The Market Pulse graphic inside The Big Picture column shows which direction the market is in right now. You'll find these features on the Market Trend page.
The best time to buy fundamentally strong stocks that are breaking out of proper base patterns.
Uptrend under Pressure
Be very careful about making any new buys and be ready to take defensive action, since the uptrend may be running out of steam. If you do decide to buy, be extra demanding and focus only on stocks showing exceptional fundamental and technical strength.
Market in Correction
Making new buys in a correction is risky, since most stocks will follow the market's downward trend. The stocks you currently own should be judged on their individual merit:
- Sell your weaker stocks. They may be stocks that already have a small loss or stocks that are following the market lower.
- Keep a close watch on your stronger stocks and be prepared to lock in gains if they start weakening with the market.