Bear Tack

  

Categories: Derivatives, Stocks, Trading

The bear tack is sometimes the first sign of potential trouble. It's what investors call decline in a stock or the market, and that makes them worry a bear market is on the way. It doesn't always mean that a bear market is developing (that is, a drop in price of 20% or more), but at the same time, it's a warning that it could be looming.

Analysts especially pay attention if there have been increases as of late, because it could mean that the popularity of that share or market is suddenly changing. Things that are trendy tend to rise and fall quickly, as you likely have already noticed, and stock trends are often no different.

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