Stock Market Information

Written by Jacey Harmon
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There is no shortage of information when it comes to the stock market. Television stations like CNBC are dedicated to providing continuous coverage of the markets. Financial websites provide press releases, economic data, income statements, and stock charts. The individual investor has unprecedented access to stock market related information.

Sometimes, however, there seems to be information overload. Individual investors may have a difficult time understanding how relevant each piece of available information is. The market does not react to data in any given pattern. A jobs report may be a market mover one day and a non-even the next. One stock may rally 10 percent after beating analysts' estimates while another may fall 10 percent after doing the same thing. Trying to sift through information and understand what it all means can be a daunting task.

Individual investors may be better off focusing on the stock market itself and not all the noise. The market looks forward and data is a reflection of what has already happened. All you need to do is pay attention to price and volume. Generally speaking, when stock prices rise on heavy volume the market is healthy. When stocks start to fall on heavy volume the market is weak. The market always seems to turn lower before the data does.

Using Stock Market Information

The information provided from the stock market--through price and volume--can be used in a variety of ways. You can take more defensive or aggressive positions depending on the market's health. You can use the market's information to trade derivatives such as futures contracts. If you see the market start to rise on heavy volume, you can trade an index future or option. The information provided from the stock market can dictate your portfolio's asset allocation. When it is all said and done, the stock market--not the news agencies--provides the best stock market information.


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