Hausse (French hausse).

Is a term for increasing prices of goods and price increasing in securities and speculation on such increases.

Baisse (French sell short).

Is a term for lower prices of goods and price declines in securities and speculation in such case.

speculation.

When it is estimated that there are hausse in a market, one will buy the assets (the price is low) and sell them later at a higher price.
Conversely,if a falling market is expected, then one will sell assets for later delivery and wait to purchase them just before delivery.

Normal situation

Positive Hausse index:
  • Rising Hausse values, after a bottom (increasing optimism)
  • Value above 50 (increasing or high  optimism)
  • Rising tops and bottoms (long term improvement of optimism, but short term uncertainty)
  • Strengthens and confirms a positive analysis of the market index

 

Negative Hausse index:
  • Falling Hausse values, after a top (decreasing optimism)
  • Values under 50 (decreasing or low optimism)
  • Falling tops and bottoms (long term reduction of optimism, and short term uncertainty)
  • Strengthens and confirms a negative analysis of the market index

Important special situations

  • Very high Hausse value, 90 or above
  • Almost everyone is positive, and consequently almost everything is positively priced in the stock market
  • Almost any change can only be negative
  • Signals overheating of the market and that a major reaction/reversal is going to come
  • Consider selling when the Hausse value drops below 90 (falling optimism, rising pessimism)
Opposite:
  • Very low Hausse value, 10 or less
  • Almost everyone is negative, and consequently almost everything is negatively priced in the stock market
  • Almost any change can only be positive
  • Signals that a tremendous sales pressure will soon be over and that prices will escalate again
  • Consider buying when the Hausse value climbs above 10 (falling pessimism and rising optimism)