The Two Market Trends That Stock Traders Should Watch

Two market trends are being closely watched by professional stock traders.
Amateur stock traders would do well to follow their lead.
One trend is established, but many believe it will now accelerate.
The other is just developing.

As a result of new banking requirements being relaxed, banks all over the world have more time to increase their new reserve requirements.

This means that banks can provide more loans.

For most businesses, the last four years have been tough.
Many successful people live by the motto; "When the going gets tough, the tough get going."
That's not necessarily true for businesses.
In fact, when the going gets tough for a business enterprise, the "tough" cut their expenses and build up their cash reserves.
For a consumer-spending-based economy such as ours, that leads to trouble.
When people cut back on spending, businesses cut back on products and services.
This is what is referred to as a "recession."

This could be changing.

All of the "economic stimulus measures" that have increased our money supply and devalued our currency may soon result in massive spending and rising stock prices.
When companies resume their spending, banks will resume lending.
If we have in fact reached the bottom of this recession, we can expect to see further progress in these two trend changes.
Economic recession has consequences.
Likewise, economic recovery has consequences.

Commodities

The term "commodities" applies to many raw materials that are used to manufacture goods for consumers to purchase. Some commodities are grown or raised by farmers. Some are dug from the earth by miners.
These raw materials are important and valuable in every nation and community.
Most commodity prices trend downward during economic recessions. If and when we come out of the existing economic recession, we can expect commodity prices to reverse their market trend and begin to move higher.
This is, potentially, a developing market trend reversal.

Emerging Markets

An existing trend that is still in its infancy is the economic growth that is exploding in the emerging nations that were formerly known as the "Third World Nations."
Brazil, Russia, India, China, and South Africa (the BRICS nations,) have been leading the "emerging markets" in economic growth and development.
It's hard to pinpoint when this market trend reversal actually occurred. At some point in the last 10 or 20 years, however, the emerging market economies began to prosper and the Western economies of Europe and North America began to stagnate.
Don't jump to the conclusion that the Western economies are in trouble. Rather, their rate of growth (long-term) has slowed while the rate of growth in the emerging markets is accelerating.
What this means is that companies operating in the emerging markets should see greater profits.

Gather your cash.

You are poised for success when you are watching for the trend changes AND you are prepared to execute stock trades.
It does you little good to see an opportunity if you have no cash available to take advantage of the situation.
It helps a lot if you think of your cash as a tool. You trade your dollars for stocks that you anticipate to go higher and you later trade those stocks back into dollars.

It's as simple as shopping for bargains at a flea market or an antique shop.
You can find more detailed information about these two market trends and why you should be paying attention by following this link:

http://newdaywealthprotection.com/index147.htm

Timothy Randolph Fletcher is the Managing Editor of the NDW TREND TRADING REPORT. It is a monthly publication that provides research, analysis, and specific stock choices for traders. The company also provides a QUICK-START GUIDE TO STOCK TRADING for those who are considering stock trading for profits. Click here for a free copy!

http://newdaywealthprotection.com/index165.htm

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