Page 168 - THE MARKET WHISPERER

164 PART 6 - Indices, Sectors And Crystal Balls

We need to recognize the indices in their order of importance and
learn how to use them. In addition, and to expand our knowledge, we will
relate to some less useful indices, simply because as future professional
colleagues, I don’t want you to feel ashamed that you’re not familiar with
them.

As a rule, we monitor several indices. We don’t believe in just one index,
but rather try to combine information from several of them. Once we get
to know the main indices, we will also learn about the sectors comprising
each index. Because of the high importance of movement of the indices for
the stocks in which I trade, I devote one full screen to indices and sectors
and watch them even more, time wise, than I watch the stock prices I am
trading.