11/14/2014

Stocks up 50% plus in a month above 20 tends to lead to correction



Stocks up 50% plus in a month above 20 tends to lead to correction /pullback in next small time frame. You can see it for yourself in the data. There can be delay of few days or 2 weeks but extremely positive readings on this indicators are short term bearish.

So far we have not seen a pullback or consolidation  but it is just a matter of time. When everyone is convinced this time is different, it tends to happen.

A pullback or consolidation will not likely be end of rally as the underlying setups are good. Lot of sideways action after first burst on many stocks. Plus dip buyers will ensure that it is shallow pullback.

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