Everything was down across the board. A great day to spend some time away from the screens. Well, yes and no. We had a huge run-up so days like today are much needed corrections to build bases and pressure for a potential further run-up. Being glued to one’s screens and worrying is not the way to go though. These are days to closely monitor stocks in order to find out more about their personality, how resilient they are and if they display relative strength compared to the stocks in their peer group.
The key question here is if we are witnessing a healthy and normal pullback within a strong bull market with further gains down the road, or if this the beginning of something more serious like the start of a bigger correction or the end of the up trend. Nobody can tell and for now we don’t have the benefit of hindsight. What we can do though is making educated guesses. Right now it looks like lots of people are viewing this pull back as a buying opportunity.
Two things I am monitoring in order two gauge the health of this bull market: (more)
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