Stock Market Conditions
The stock marketplace is either in a bull market or bear market at all times. Right now in 2012, the stock market, as defined by the S&P 500 and Nasdaq is in a bull market which started in March 2009.
Normally bear markets are very rapid, they tend to only last eighteen months or so. In spite of this the losses can be quite large. For the most part people lost more than twenty five percent in the modern market collapse of 2008. It is significant to keep tabs on the healthiness of the total market. Even if you don’t play big board blue chip futures, it is judicious to have your finger on the pulse of the most important indices.
This is proper for traders who concentrate in trading penny stocks also. They cannot merely turn a blind eye to the Nasdaq and go about their dealings of trading penny equities. The overlying problem is something referred to as overall market sentiment. Mostly, if the general market is doing well, people are more apt to put new money into stocks. Not just big board stocks but micro cap stocks also. So you can see how an overall bullish stock market can relieve penny stock traders make money in bullish circumstances as well. They largely focus on hot penny stocks that are thriving on bullish sentiment that is spilling over from the global market.
Many folks don’t have the time or inclination to track this type of numbers. They can do some research to see which micro cap stocks newsletter would keep them up to date on market conditions as well as which penny stocks are ripe for appreciation.
It is really simple to look up whether the stock market is in bull or bear mode, the easiest way is to use the two hundred and fifty day moving average on a chart of the major indices. If the fifty day average is higher than the two hundred day, then the market is basically in bull market mode. Explaining this to some folks is very easy, with others it is like trying to nail jello to the wall. This is why some people subscribe to stock market advisory newsletters. Nothing is in the wrong with that, but many do well by conducting much of the investigation themselves.
To start off 2012 right as a penny stock trader, you need to subscribe to a newsletter that can give you some good penny stock selections. There are an a small amount trends that could end up boosting certain stocks up to ten times their current price per share.
The first trend is technology. This isn’t necessarily a new one. We all remember the tech bubble bursting in 2000. However, many of the technologies that ended up failing back then are starting to come full circle now. For example, cloud computing stocks are starting to generate good earnings. Salesforce.com is an example we can look at in this sector.
Another good trend that is fast footing is natural gas stocks. Cheniere Energy (symbol is LNG) is an exporter of natural gas that has the possibility to be one hundred dollars per share as long as they can keep servicing their debt. They have upcoming contracts with european nations to deliver liquid natural gas. Some countries are using liquid natural gas to fuel cars. This gives us some insight as to how big this corporation can become.
A penny stock newsletter that is on top of these trends is Microcap Millionaires. They send out daily updates and keep you abreast of all the potentially profitable trades that are upcoming to light in 2012.
Looking for big returns? Then
penny stocks can help you achieve that goal if you are willing to take the risk.
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