IN THE GIVEN PRESENTATION WILL BE ILLUSTRATED THE CHARACTERISTIC FEATURES OF 5 MAIN MARKET TRENDS

2. THE TENDENCY OF A FINANCIAL MARKET
TO MOVE IN A SPECIFIC DIRECTION OVER
A PERIOD OF TIME IS CALLED MARKET
TREND.
I N T HE GI V EN PRESENTAT I ON WI L L B E
I L LUST RAT ED T HE CHARAC T ERI ST I C
F EAT URES OF 5 MAI N MARKET T RENDS

3. TIME FRAMES
MARKET TREND
a c c o r d i n g t o
RISING AND FALLING
P R I M A RY
S E C U L A R
S E C O N DA RY
B U L L I S H
B E A R I S H

4. 1. SECUL AR MARKET T RENDS CHARAC T ERI ZE LONG T I ME
F RAMES L AST I NG AS LONG AS 2 5 YEARS . I T CONSI STS OF A
SERI ES OF PRI MARY T RENDS.
2. T HE MARKET T RENDS FOR MEDI UM T I ME F RAMES ARE
REFERRED AS PRI MARY. A PRI MARY TREND WHI CH GAI NS A
B ROAD SUPPORT I N T HE ENT I RE MARKET USUAL LY L ASTS FOR
A YEAR OR MORE .
3. T HE OT HER T YPE OF MARKET T RENDS I S T HE SECONDARY
ONE WHI CH CONCERNS TO SHORT T I ME F RAMES. T HE
OV ERAL L DURAT I ON OF T HI S T REND REACHES F ROM A F EW
WEEKS TO A FEW MONTHS.

5. THE TERMS “BULL MARKET” AND “BEAR
MARKET” STAND FOR IDENTIFYING THE UPWARD
AND DOWNWARD MARKET TRENDS, RESPECTIVELY.
4. A BULL MARKET GENERALLY STARTS BEFORE THE ECONOMY INDICATES EXACT SIGNS OF
RECOVERY. DURING SUCH AMOVEMENT IN THE FINANCIAL MARKET THE PRICES OF
SECURIRIES ARE RISING OR ARE EXPECTED TO RISE.
Example:
Bullish market; June 2006-June 2007
THE CHARACTERISTIC FEATURES OF BULL MARKETS ARE OPTIMISM AND THAT THE STRONG
RESULTS WILL CONTINUE.

6. IF THE BULL MARKET IS CHARACTERIZED BY OPTIMISM THEN THE BEAR MARKET IS FEATURED
BY PESSIMISM. THE PRICES OF SECURITIES ARE FALLING IN SUCH MARKET CONDITION,AND
THE PESSIMISM CAUSES THE NEGATIVE SENTIMENT TO BE SELF-SUSTAINING.
5. A BEAR MARKET SHOWS THE GENERAL DECLINE IN THE MARKET OVER A
PERIOD OF TIME. IT INDICATES THE DECLINE OF PRICES OF A SINGLE SECURITY OR
ASSET, OR THE SECURITIES MARKET AS A WHOLE.
Example:
Bearish market; April 2008-May 2009

7. WHAT IS THE ORIGIN OF THE TERMS BULL AND
BEAR MARKET
2 BASI C ASSUMPT I ONS:
1. IT IS THOUGHT THAT THE TERMS "BEAR" AND "BULL" DERIVE FROM THE WAY
THE ANIMALS ATTACK THEIR OPPONENTS. BULLS IN ORDER TO ATTACK THEIR
OPPONENTS THRUST THEIR HORNS UP INTO THE AIR. CONVERSELY BEARS IN
SUCH SITUATIONS SWIPE DOWN. THOSE ACTIONS OVER A PERIOD OF TIME WERE
METAPHORICALLY ASSOCIATED WITH THE MARKET MOVEMENT.
2. BY THE EARLY 18th CENTURY MEN WOULD SELL THE BEAR SKINS THEY HAD YET TO RECEIVE.
THEN HOPING THAT THE PRICE OF THE SKIN WOULD DROP THEY WOULD SPECULATE ON THE
FUTURE PURCHASE. THESE MEN FOR SHORT THEY WERE CALLED "BEARS". IN THE SAME WAY
THE TERM DERIVED FOR DESCRIBING THE DOWNWARD TREND IN THE MARKET.
SO, IF THE TERM BEAR STANDS FOR A DOWNWARD TREND THEN THE TERM BULL WILL STAND
FOR THE OPPOSITE DIRECTION, I.E. UPWARD.

8. THANKS FOR ATTENTION
WE HO P E T HAT T HI S P RESENTAT I O N HEL P ED YO U DI SCOV ER
SO ME ESSENT I AL AND MEANWHI L E I NT EREST I NG P O I NTS O F
F I NANCI AL MARKET.
BE IN TOUCH
B E S T R E G A R D S ,
I F C M A R K E T S