Education & Information
The New York Stock Exchange
Bullish Percent Chart
There are times in which the overall market is providing you a wonderful opportunity to grow your assets and there are times in which it is not. The NYSE bullish percent (BP) chart will provide you a reliable indicator to help set your overall approach toward the market.
Market extremes tend to cause 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 NYSE BP chart is that it helps you make objective, informed investment decisions without letting emotions cloud the picture.
When the news is the worst, every investor that wants to sell 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 because the supply is washed out of the market. The NYSE 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 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. The NYSE BP chart will give you the confidence to make sell decisions when market risk is elevated.