(PRWEB) March 24, 2011
Ever since the great depression stock market crash of 1929, investors, economists and mathematicians have sought a formula to accurately predict the ups and downs of the stock market. To date, the magic bullet has remained elusive. But Ronny Skog of http://trend-chart.com 's newly launched STOCK MARKET THERMOMETER is confident in his ability to forecast the next bear market.
The free stock market meter measures the current strength of the U.S. stock market and give early warnings when a stock market crash is developing, says Skog, a native of Oslo. Although the algorithm will remain a secret, the stockmeter readings are based upon movement of smart money in the market - how much money is flowing into, or out of, the U.S. stock market.
According to Skog, the inventor of the stock market thermometer, supply and demand is the most important factor in the development of stock prices. If the smart money such as mutual funds and big institutional investors are accumulating, the price moves up. If they are distributing, the price will fall. The stock market barometer is measuring daily changes in supply and demand - if the smart money are accumulating or distributing at any given time.
The U.S. stock market represented by the S&P 500 index lost more than 50% during the recent 2008 bear market, and thousands of investors lost their savings when the stock market crashed. “Such losses are unnecessary. By keeping an eye on supply and demand in the stock market, investors can get out during the early stages of a bear market,” says Skog.
Skog believes that for the average investor, traditional stock market charts are confusing and hard to read with bewildering technical indicators, daily noise, price gaps, and choppiness. The result for even the most dedicated investor can be information overload with no way to distill the facts into understandable trends. The stock thermometer features clear-cut, color-coded signals allowing investors to track trends easily and to respond quickly when a bear market or stock market crash is developing.
While the stock market thermometer stays green, the market is considered bullish. If the stock meter moves into red, a stock market crash or bear market is likely underway. When this happen, small investors should get out of the stock market quickly and protect their investment capital, says Skog.
Investors can use the stock market thermometer at no cost by going to: