Market experienced a 4 to 5% correction. The correction was more pronounced in hot technology sector. However the correction has not yet resulted in the primary breadth indicator turning lower. So breadth trends show that as of now the correction was limited to certain section of the market.
The correction has created a possible bullish scenario. The stocks that are holding up well are forming bases. New sector leadership is emerging. This indicates likelihood of another up leg in the bull move. Provided more heavy selling does not happen in near future.
A breadth thrust at this stage will be very bullish scenario for next up leg. A series of 300 plus days will confirm that. Or a range expansion in index with 1% plus day might do same.
Absent that markets might settle down in range and a breakout might happen in anticipation of next earnings season.
More 300 plus days to the downside will bring in the 8 to 10% correction scenario in play.
As of now I will look at dipping toe back with EP and STIB. Will keep risk exposure low to start with or go in to hit and run mode . In hit and run mode I look for 4 to 5% profit kind of quick trades. Currently in cash.
1 comment:
Stockbee, just found your site, excellent info, one suggestion, looking at your "drawings" try out Snagit which is a great progrma for snagging images, typing, drawing, etc. on images.
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