Education & Information
The NASDAQ Bullish Percent Chart
There are times in which the NASDAQ is providing you a wonderful opportunity to grow your assets and there are times in which it is not. The NASDAQ bullish percent (BP) chart will provide you a reliable indicator to help set your overall approach toward this market.
The NASDAQ market tends to move to extremes causing emotional decision making. It also tends to cause extreme media reporting. Most investment decisions that are based on media reporting and emotional influences will be poor decisions. One of the main benefits of the NASDAQ BP chart is that it helps you make objective, informed investment decisions on the NASDAQ without letting emotions cloud the picture.
When the news is the worst, every investor that wants to sell NASDAQ issues because of the negative news has already sold. That supply is already reflected in stock prices moving them to lows. Although it is emotionally difficult to buy during times of negative news that is the lowest risk time to make investments in the NASDAQ because the supply is washed out of the market. The NASDAQ BP chart will give you the confidence to make low risk investments at these times.
Conversely, when the news is all positive, every investor that wants to buy NASDAQ issues because of the positive news has already bought. That demand is reflected in stock prices moving them to highs. The media will be reporting positive business and economic conditions during these times and psychologically it will not feel right to sell your NASDAQ positions. The NASDAQ BP chart will give you the confidence to make sell decisions when the risk is elevated in this market.