Search results
Results From The WOW.Com Content Network
The opposite market condition to normal backwardation is known as contango. Contango refers to "negative basis" where the future price is trading above the expected spot price. [3] Note: In industry parlance backwardation may refer to the situation that futures prices are below the current spot price. [4]
A bear market is essentially the opposite of a bull market, meaning that it is a prolonged period of declining prices. A bear market generally occurs when prices have declined by at least 20 ...
If short-term interest rates were expected to fall in a contango market, this would narrow the spread between a futures contract and an underlying asset in good supply. . This is because the cost of carry will fall due to the lower interest rate, which in turn results in the difference between the price of the future and the underlying growing smaller (i.e. narrow
The pole is formed by a line which represents the primary trend in the market. The pattern, which could be bullish or bearish, is seen as the market potentially just taking a "breather" after a big move before continuing its primary trend. [3] [4] The chart below illustrates a bull flag. A bear flag would trend in the opposite direction.
Very bearish sentiment is usually followed by the market going up more than normal, and vice versa. [3] A bull market refers to a sustained period of either realized or expected price rises, [4] whereas a bear market is used to describe when an index or stock has fallen 20% or more from a recent high for a sustained length of time. [5]
Learn about bullish and bearish investors, markets and stocks. Figure out the differences between each and how to invest in a bear market. Bullish vs. Bearish Investors: Which Are You?
Bottom line. Whether stock prices rise in a bull market or fall in a bear market, the same investing basics hold true. Use dollar-cost averaging to your advantage; consider buying and holding low ...
Backwardation indicates the futures curve is falling, with spot markets and short-term futures contracts priced higher than longer-dated contracts.