lowtrade

[lowtrade]

Are there any simple technical or even fundamental indicators that could tell me that a bear market is on the horizon?

There are 2 basic elements needed before a market is considered a BEAR MARKET. 1st a correction of 20%, 2nd two months of falling index prices. So you'll see it coming long before it's there.

Small, big boards, investors have little options in a bear market for trading (investments should be closed), if they don't have a good account size which has margin trading available, so they can short the market. I personal won't short the market I trade. As I don't have the greed factor most have. I can't see the logic in beating down (piling on) when the economy needs the market to go up. But that's a completely different subject. It's like the unexplainable logic of pennylanders buying the bid and wanting and expecting the stock price to rise! DUMB ass logic !!!

What I do and have done in down markets, whether bear or in correction, is play/swing the FAS/FAZ 3 times bull/bear ETFs. Also it's a good time to increase your dividend portfolio size and take some buying ops in existing divvy holdings, lowering ones basis.

I do and have recommended checking out FAS/FAZ trading during declining markets. The FAZ gets you downside gains without shorting and switching to FAS during up times, of the down trending market, can add synergy to ones take home gains.

As for dividend stocks, their companies can't change payouts as quick as the bear market declines usually. Most announce on a quarterly basis and don't adjust down on 1 Q's poor performance. So when it all balances out, you find opportunities moving to or increasing holdings in dividend stocks with good payouts. I recommend REIT's, there, divvy's can be as high as 15%+. Any small changes in payout there still give nice returns in bear markets. Checkout NYTM & CIM which I have had experience with.