Hey guys, didn’t want to finish out the day without sending you over to a post that you should probably bookmark and will definitely want to refer back to. My friend Ivan Hoff, one of the brilliant data/trading guys behind the StockTwits Network, has an amazing list of 20 stock market truths posted today…
1. Stock prices run in cycles. Periods of re-pricing are usually quick and powerful and then they are followed by trendless consolidation.
2. Stocks are very highly correlated during drastic selloffs and during the initial stage of the recovery.
3. Bull markets are markets of stocks, where there are both winner and losers. When the market averages consolidate, there are stocks that will break up or down, revealing the future intentions of institutional buyers.