There are only two possible directions, depicting animal insignia i.e. Bulls and Bears.
So how did the Kangaroo jump into this?
For those who know and don’t know, the bull market is a term coined for a period of 20% or more rise in the prices of the stocks. Its prediction is not as easy as we think, and not as common as we use. It basically signifies that our economy is either strengthening itself or is already strong, falling directly in line with the GDP.
Similarly, a bear market is a period in which the price of securities falls by 20% or more from their high. But interestingly 20% is just an ordinary number as a 10% decline is considered as a correction. So sometimes it becomes difficult to distinguish between a real bear market and a correction.
A symptom observed during this period is a weakening or sluggish economy, with rising unemployment and a drop in profits. It can last for a few weeks to almost 20 years.
Fun fact: The only 20 year bear run we have ever seen was during the Great Depression of 1929.
On the other hand let’s observe a more recent insignia, the KANGAROO…
Just like a Kangaroo hops up and down, the “Kangaroo Market” also sees the same. The market in this situation would be jumping up and down without showing a strong uptrend or downtrend,
So how is it different as compared to a sideways market?
A Kangaroo market is much more volatile as compared to a simple sideways market (as we can observe right now).
Great, I know what is Kangaroo Market, but Aditya I need to know the future to make profits right? Tell me how will I do that??
Surely I’ll answer your question…
One of the best ways to identify the longe term trend is to use a study called Dow Theory.
If subsequent higher highs are observed, then we can say that there is a high probability of uptrend in that region. The same applies to downtrend too i.e. lower lows equate to a downtrend.
Now again, it’s not that simple to observe these higher highs and lower lows in the market, and for that we have made a 100% practical strategy which has given around 22% CAGR return historically.
You just have to follow the strategy step by step and you will get your answer automatically.
Also If you haven’t tried Dow theory yet, or don’t know about it then you’re missing on a ton of profit…
Here is a FREE COURSE on stock markets which will lead you to the Dow Theory Strategy.
1 thought on “Ever Heard of the term “Kangaroo Market”?”
I want to learn about stock … I don’t know anything about stock market..i am begginer