The Here and Now

The easy money was made for the most part from January until March.  Last week quite a few stocks enjoyed nice 2 to 3 day rallies but that came to an end in one session.  Here’s what we know now;

  • All the major indices are trading below their 50 day moving average; RUT, SPY, COMPQ, NDX.
  • We’ve had quite a few of gap downs/deep corrections from former leaders and or stocks that were holding up well; RAX, TESS, TPX, HLF, UBNT, MAKO, FOSL, MFRM, BODY, MELI, APPL.  In good markets earnings miss etc..are forgiven.
  • IBD now is back to a market in correction stance.  I realize some don’t believe in the IBD model—whatever….others are CANSLIMERS in bull markets but when the market goes into correction then they have different rules.
  • For many it is best to stay nimble or perhaps take a break until stocks firm up unless if you are a day-trader.
  • Remember really good money is made after corrections, so welcome them but make sure you keep your mental and working capital intact in the meantime.
  • For most investors this might be a Arnold Rothsthein do nothing moment as far as initiating new trades.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.


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