3/02/2011 05:54:00 PM

What is a bulls market?

A bulls market occurs when the overall trend of the market is upward. It gets its name from the animal the bull. A bull attacks by thrusting its horns upward. The same way stocks go up in a bulls market
The indexes such as the S&P, NADAQ, and the Dow Jones are good market direction indicators. If the Indexes are in an uptrend the market is bullish. Also the volatility indexes are normally at their lows.

During a Bulls market the majority of stocks go up. This is why most traders prefer bulls markets over Bears market, which is when the majority of stocks head downward. Also this is when the long term investors will make the most money. Bulls markets represent optimism and growth expectation.

This is not to say that there are no bearish stocks in a bulls market. In fact many traders will still keep bearish watch list during this time.

A market crash will normally signal the end of a bulls market and the beginning of a bears market. Although many people are late to realize when a bulls market ends and when a bears market begains.

Fortunately for all those bullish traders , a bulls market will normally last longer than a bears market will. Just remember in this time period shorting stocks can be tricky at times.