As of 05/08/2025   Indus: 41,368 +254.48 +0.6%     Trans: 14,131 +348.60 +2.5%     Utils: 1,034 -11.19 -1.1%     Nasdaq: 17,928 +189.98 +1.1%     S&P 500: 5,664 +32.66 +0.6%	YTD -2.8%   -11.1%    +5.2%   -7.2%   -3.7%	Targets    Overview: 04/25/2025     41,700 or 38,000 by 05/15/2025   14,400 or 13,000 by 05/15/2025   1,075 or 1,000 by 05/15/2025   18,300 or 16,500 by 05/15/2025   5,700 or 5,300 by 05/15/2025
Chart Pattern Indicator: on 4/15/25

As of 05/08/2025   Indus: 41,368 +254.48 +0.6%     Trans: 14,131 +348.60 +2.5%     Utils: 1,034 -11.19 -1.1%     Nasdaq: 17,928 +189.98 +1.1%     S&P 500: 5,664 +32.66 +0.6%	YTD -2.8%   -11.1%    +5.2%   -7.2%   -3.7%
Targets    Overview: 04/25/2025     41,700 or 38,000 by 05/15/2025   14,400 or 13,000 by 05/15/2025   1,075 or 1,000 by 05/15/2025   18,300 or 16,500 by 05/15/2025   5,700 or 5,300 by 05/15/2025
Chart Pattern Indicator: on 4/15/25

Bulkowski on Factors Influencing Stocks

How important are market and industry trends in influencing the behavior of your stock? Many people have asked that question, and this page provides at least part of the answer.

This is from the book, Investment Analysis and Management, by Stanley Huang, published in 1981 by Winthrop Publishers, Inc.

Here are the results from research on the influence of several factors on stock price changes.

Huang cites a study done by Richard A. Brealey in An Introduction to Risk & Return from Common Stocks, published by M.I.T. Press in 1969. I averaged the results of the 63 stocks in 6 industries that he shows, covering the period from 1952 to 1960. Here's what I found.

Although the results are decades old, they do provide some idea of how important it is to consider the market and industry trends when trading stocks. The first category, general market, is an influence that affects all stocks. The company (stock) influences are factors that pertain to one stock. An industry influence is one that affects all stocks in the same industry. The ‘other' category includes a variety of influences that are not industry specific.

Notice how important the general market is to the price fluctuation of common stocks – 31%. Think of this as the importance of general economic conditions to stock behavior. What surprises me are the low 12% attributed to industry specific influences and 20% for stock (company specific) influences.

-- Thomas Bulkowski

See Also

• A number of research studies await you, asking for you by name.
• Focus on fundamentals. Picking stocks using fundamental analysis.
• How to pick stocks, part 1.
• Stocks that double. Discover what attributes they share.
• 3 tips to help you pick stocks.
• 12 tips for stock selection.

Cannibal: A guy who goes into a restaurant and orders the waiter.