- Appearance is deceptive. The market looked very weak yesterday but only 73 stock were down 4% or more. There might be attempts at bounce before real selling kicks in.
- Recent breakouts have run in to some trouble, but mostly good fundamental stocks have not seen heavy selling.
- Typically market corrects, again stabilizes and then breakout work again. Avoiding few days of intense selling is key. Anyway when market corrects, you get few breakouts in scan, so the system is self correcting.
- Episodic Pivot candidates and 100% plus or Double Trouble candidates tend to do better during corrections.
- As of now this is still a garden variety corection. When 4% plus down reading hits 300, I would be worried.
6/07/2007
Market Monitor
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2 comments:
What do you recommend to do the next days to avoid lose much money in case corrections keeps going?. Should we putting stop-loss orders?.
Best.
All positions always have stop orders.
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