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market timing indicators Archives

What are Market Timing Indicators?

Market timing indicators help you identify the best times to buy and sell a stock, thereby maximizing your profits. 

To understand market timing indicators, it’s important to understand what market timing is. The very short definition is that market timing is an investing strategy where you attempt to predict how the market will move in the coming days and buy or sell based on that. 

Even though market timing is big for short-term traders, there can be some advantages to the strategy for long-term investors, as well. Market timing indicators can give you some advanced warning of market volatility or the most important thing to investors—is there any way to see a downturn coming and to avoid the pain?

The answer is yes, and the method for avoiding devastating declines isn’t as complicated as the media makes it out to be. The biggest problem is that there are a lot of market timing indicators out there. Some of them work better than others. 

There are three market timing indicators we rely on most here at Cabot. 

The Cabot Trend Lines are our unique way of determining the long-term trend of the stock market. As long as both the S&P 500 Index and the Nasdaq Composite fluctuate above their respective trend lines, we consider the market to be bullish. If both indexes are below their trend lines, we are in a bear market.

With Cabot Tides, we use five different market indexes to help us determine the overall intermediate-term direction of the stock market.

And our Two-Second Indicator’s specialty is detecting market tops. 

The key here is that these indicators are trend following measures, not trend predictors. In geological terms, you can think of them as the instruments we use to predict volcanic eruptions. They measure what is happening around the volcano so you aren’t caught off guard when it erupts.  

To learn more, download our FREE report, Technical Analysis of Stocks: How Relative Performance Works, Why Trading Volume is Important, and Other Chart-Reading Lessons. 

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Cabot Dividend Investor Weekly Update

From the issue of |by Jennifer Doe|Dividend Stocks

Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.
Read More

Cabot Marijuana Investor 221

From the Cabot Marijuana Investor 221 issue of Cabot Marijuana Investor|by Timothy Lutts|Stock Market

“Legal Weed Stocks Dip Despite New Jersey Governor Signing Recreational Cannabis Bill Into Law” That was the headline on one of my news sources yesterday morning, implying that the action of the stocks in light of that legalization event was somehow illogical. But as know...
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Cabot Growth Investor Special Bulletin

February 23, 2021|From Cabot Growth Investor|by Mike Cintolo|Growth Stocks

The overall market isn’t cracking yet, but growth stocks are beginning to flash lots of abnormal action. With our trend-following indicators still positive, we wouldn’t sell wholesale, especially if you came into this week with some cash (we had 20% in the Model Portfolio).
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Cabot Stock of the Week 336

From the Cabot Stock of the Week 336 issue of Cabot Stock of the Week|by Timothy Lutts|Stock Market

With this week’s recommendation, I’m swinging back to the more conservative side with a solid technology company poised for big gains from the 5G communications rollout.
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Cabot Prime Week Ending February 19, 2021

From the Cabot Prime Week Ending February 19, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
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Cabot Prime Pro Week Ending February 19, 2021

From the Cabot Prime Pro Week Ending February 19, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Growth Investor Bi-weekly Update

February 18, 2021|From Cabot Growth Investor|by Mike Cintolo|Growth Stocks

The market took another hit this morning, but like yesterday, the major indexes have found support as the day has progressed—just after 3 pm EST, the Dow was down 70 points while the Nasdaq was off 66 points. Part of the reason for recent...
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Cabot Dividend Investor Weekly Update

February 17, 2021|From Cabot Dividend Investor|by Tom Hutchinson|Dividend Stocks

Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.
Read More

Cabot Stock of the Week 335

From the Cabot Stock of the Week 335 issue of Cabot Stock of the Week|by Timothy Lutts|Stock Market

This week’s recommendation is a small company with no earnings, minimal revenues and a lot of competition.
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Cabot Prime Pro Week Ending February 12, 2021

From the Cabot Prime Pro Week Ending February 12, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Week Ending February 12, 2021

From the Cabot Prime Week Ending February 12, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Growth Investor 1465

From the Cabot Growth Investor 1465 issue of Cabot Growth Investor|by Mike Cintolo|Growth Stocks

Simply Put: Very Impressive Action Two weeks ago, the major indexes and some individual stocks began to flash abnormal action, a couple of key leaders were threatening to break down and some late-in-the-advance type of action (heavily shorted stocks going nuts) was occurring. Importantly, the...
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Cabot Marijuana Investor Update

February 10, 2021|From Cabot Marijuana Investor|by Timothy Lutts|Growth Stocks

As I’ve explained previously, I’ve become increasingly concerned that the blistering advance of the marijuana sector had progressed so far so fast that it was getting increasingly ripe for a correction. But as long as the stocks were advancing, I was happy to fully...
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Cabot Dividend Investor 221

From the Cabot Dividend Investor 221 issue of Cabot Dividend Investor|by Tom Hutchinson|Dividend Stocks

The Market Just Keeps on Going The bull market keeps raging. All three major indexes just made still new all-time highs. The S&P 500 is up about 20% since the end of October and 78% since the low of last March. How long can keep...
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Cabot Stock of the Week 334

From the Cabot Stock of the Week 334 issue of Cabot Stock of the Week|by Timothy Lutts|Stock Market

Today I’m swinging back to pure growth with a very interesting stock that has a great story—and no direct competition.
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Cabot Prime Pro Week Ending February 5, 2021

From the Cabot Prime Pro Week Ending February 5, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Week Ending February 5, 2021

From the Cabot Prime Week Ending February 5, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Growth Investor Bi-weekly Update

February 4, 2021|From Cabot Growth Investor|by Mike Cintolo|Growth Stocks

The quick rebound in the major indexes and many growth stocks this week has been very encouraging—it doesn’t completely clear the air from some of the abnormal action last week, but it’s definitely a plus. We remain mostly bullish, though we continue to entries...
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Cabot Dividend Investor Weekly Update

February 3, 2021|From Cabot Dividend Investor|by Tom Hutchinson|Dividend Stocks

The fourth quarter earnings season is well under way and the results have been somewhat spectacular so far, and much better than expected.
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Cabot Marijuana Investor Update

February 3, 2021|From Cabot Marijuana Investor|by Timothy Lutts|Growth Stocks

The GameStop Affair last week offered great entertainment for those of us neither long nor short the stock, but in the end what does it mean? In my opinion, the market worked; I don’t see any real problems revealed (aside from naivety of of...
Read More

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