“It is a classic indicator of a bull market when stocks don’t go down even on bad news.” – Elvis Picardo

During this period, market is rising, NASDAQ goes up, investors are positive, economy is strong, inflation is under control, unemployment is low and the market is strongly on the buy side. These trends drive optimism and hopes of making some quick money for the investors. Most of the investors want to buy shares and hang on tight to watch money roll in. The competition among investors pushes the prices higher and higher. One can see large number of shares being traded in the market at this time. Therefore, Bull Market is signified as the rising market.

In a bullish market, if the investor could recognize the trend early, he can make some quick money very easily by buying at low and selling at high with very good profit margins.

Bull market can be measured on the basis of various characteristics like when 80% of the stock prices rise or if the market indices rise at least 15%. It may not be the case that stocks of all sectors are rising during this period, different sectors may experience bull markets at different point of time. A bullish market can span from couple of months to years.

Prediction of bull market is done by technical analysis and various financial theories. Most of the financial theories agree that economic cycle and investor sentiment both play a very important role in creation of the bull market.