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THE MARKET WHISPERER 16 3

Most stock trends can be
anticipated according to the
movement of the market and
sector to which a company

belongs.

How to Predict Movement

Market performance is measured with market indices. Every index
represents a different group of companies and is comprised of different
market sectors. Indices can be represented on a chart, and we observe
the movement of the index through candles. Every index and every sector
has a different meaning. Some are more important, some less so, but all
are important. A market index does not serve only to show us what the
market has “done,” but above all else, to predict which way the market
is trending. Because the market and sectors are responsible for 90% of
price movement for the stocks we trade, it follows that if you know how
to predict index movement, you will also be able to predict the price
movement of the stocks in which you are interested. Stop for a moment
and think about that. Do you really understand the significance of what
you’ve just read? Okay, let’s move forward.

SMART The market index is no less than the trader’s crystal ball. A full
MONEY 90% of the price movement begins and ends with advance
movement of the market index