Buck The Trend

AAA

DEFINITION of 'Buck The Trend'

When a security or a class of assets sees its market-driven price move in the opposite direction of the broad market or its competition. The move could be in either direction, but generally occurs as a result of good performance in the face of negative broad market performance.

The meaning is often extrapolated out from just asset prices to business and market fluctuations. If a company is recording increased sales while its competitors lose business, that company would be "bucking the trend".

INVESTOPEDIA EXPLAINS 'Buck The Trend'

It may be a bullish signal when a stock is able to resist a prevailing downtrend in its own industry or against the broad market. This suggests that investors are attracted to the stock despite negativity surrounding its competitors and peers.

RELATED TERMS
  1. Contra Market

    A move against the direction or trend of the broad market. Contra ...
  2. Bear Market

    A market condition in which the prices of securities are falling, ...
  3. Market Share

    The percentage of an industry or market's total sales that is ...
  4. Industry Lifecycle

    A concept relating to the different stages an industry will go ...
  5. Double Up

    An investing strategy in which a trader doubles his or her current ...
  6. Contrarian

    An investment style that goes against prevailing market trends ...
Related Articles
  1. Use The Momentum Strategy To Your Advantage
    Trading Strategies

    Use The Momentum Strategy To Your Advantage

  2. Identifying Market Trends
    Active Trading Fundamentals

    Identifying Market Trends

  3. Can Perpetual Contrarians Profit As ...
    Trading Strategies

    Can Perpetual Contrarians Profit As ...

  4. Cyclical Versus Non-Cyclical Stocks
    Options & Futures

    Cyclical Versus Non-Cyclical Stocks

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center