Bearish Markets

The term bearish originated in the United States. It is said that some hunters sold the skin of the bear before having hunted it down. These are equal today to those that have a market low and speculate trusting in it, in other words, they sell a share they do not even have yet but that they are thinking about acquiring later. The price of a share is the resultant of the fight between the bull, the buyer, and the bear, the seller. Bulls push the prices up and bears pull the prices down. The direction in which the prices move reveals who is winning the fight. The price at which the transaction is closed at is that in which a bull and a bear decided to settle on. That price represents the consensus of their expectations. The bulls will continue thinking that the price will increase, and on the other hand, the bears will continue thinking the price will reduce. Besides the bulls and the bears, the contention of the stock market can also be symbolized like a bull race. The speculator will be the bull fighter that will defy the imposing beast of uncontainable strength, with his defying movements: the market. The bull fighter will win, after the labor of steps and agility, will be able to guess, with his sword, the final lunge, to put end to the agony of the fight, as well as the spectator is able to get rid of a cheap bought stock, in the maximum price of its cycle. If one is able to understand in depth the maturing and expiry of the raised cycle of the studied action, giving the order to sale to get out in the opportune moment, it will be equivalent to dominating the art of bullfighting.

Fable of the Bulls
In the top of a hill there was a young bull and an old bull looking towards the valley that just so happened to be full of attractive cows in a pasture. The young bull tells the old bull. “Come on, we can go down there running and with lucky we can catch some cows and make them ours”. The old bull looks at the young one and told him with a smile, “no sun. Let’s walk slow and carefully until we are down there, and will make many more of them ours”. Through the use of a rigorous system, that is based on the technical analysis of the stock market, it is possible to minimize human errors, the product of decisions that were made based on the emotions influenced by the environment, and the number of guesses when buying a stock can be better pin pointed, to then sell it when one is evolving to a higher price.

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