Finance and stock trading jargon - What is a Barometer Stock or Bellwether Stock

Barometer Stock
A security whose price pattern is regarded as an indicator of the state of the overall market.
All bellwether stocks are also barometer stocks

Bellwether StockA stock that is believed to be a leading indicator of the direction of a sector, industry or market as a whole. Bellwether stocks are often used to determine the direction in which an industry or market is headed in the short term.

Bellwether stocks are typically large-cap equities that when performing well signal a bullish market but when performing poorly may signal a bearish market. Many different stocks may be classified as bellwethers; however, shipping and rail stocks have historically been particularly good bellwethers for the U.S. economy.

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