Before investing, having an opinion about the direction (having a market bias) of the major stock market indexes is critical. Here’s how stock market indexes can help you make better investment choices and help you preserve wealth.

Stocks usually follow their market index

Most ETFs and mutual funds are created from stocks.  All stock market indexes are made up of its member stocks. Most of these stocks will follow the direction of market index itself — it’s really that simple.  For example, when the Dow Jones trends up, usually most of its thirty member stocks do too.  And when the Dow Jones trends down, generally so do its thirty member stocks.

Stocks market indexes often predict the economic future

Generally, these three major stock indexes also lead the economy by three months.  In other words, the economy will follow the direction of the major market indexes three months later.  There are exceptions to this, but these exceptions occur for short periods and are rare.

We think that there’s a better way — all markets are inter-related

A popular opinion is to ride it out and stay focused on the long term.  However, these long term views can sometimes take more than a year and often swing between highs and lows wiping out gains, or worse adding to losses.  As an example, the SP500 in early 1998 was at the same level as it was in October 2011 — 13 years of zero net gain.  Long term investing is likely a thing of the past.

An opinion about Gold will help when buying Gold stocks

We provide candid analysis of these three major stock indexes to identify major tops and major bottoms.  We also provide candid analysis of the US Dollar, the Euro, Gold, Silver, WTI Oil, Natural Gas, Real Estate and Interest Rates. We do this in order to provide investors a better chance of understanding when to get into the market, when to get out of the market or sometimes when to sit on the sidelines and wait.  A good starting point is a weekly chart.

We feel this approach helps investors make better choices, earn more and preserve wealth.

We analyze and comment on these three major stock indexes

We analyze and comment on these commodities

Interested in following us to make better investment choices?

Subscribe here for free access to our charts and analysis every Monday, Wednesday and Friday (we email you when updates are posted) or view some of our free charts .

What about trading options?

Don’t waste your time with books and overpriced courseware.  Go directly to tastytrade.com and sign up for free.  Then go to thinkorswim.com and install their free delayed quote platform.  We get nothing for this pitch — these two sites are awesome — plain and simple — everything you need to learn to trade options successfully.  Recently, dough.com has been built with a simplified platform for those getting started with taking charge of their financial future.