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.
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.
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)
- 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)