Last week was a down week for the market. At this point, in spite of the pullback, $tockMarketDirection still maintains a bullish posture. Our proprietary trend indicator has not triggered a change in market posture yet. Although there was a pullback, many of the stocks reporting earnings did so on a positive note.
The major concern now is that the market has elevated to lofty levels without a significant pullback or breather along the way. Additionally, August, September and October have statistically been lower performance months for the market in general. Factoring in each of these variables, we may have the perfect storm brewing for a 7-10 percent market correction.
While we may anticipate a potential pullback, its important that follower/bloggers not jump the gun. Its possible we may continue to move higher. It is still too early to tell which direction we will eventually go. While we may anticipate a pullback, its not prudent to trade on what you believe the market will do. Patience is a virtue, especially in trading/investing. We will issue an ALERT if there is a change in market posture.
The major concern now is that the market has elevated to lofty levels without a significant pullback or breather along the way. Additionally, August, September and October have statistically been lower performance months for the market in general. Factoring in each of these variables, we may have the perfect storm brewing for a 7-10 percent market correction.
While we may anticipate a potential pullback, its important that follower/bloggers not jump the gun. Its possible we may continue to move higher. It is still too early to tell which direction we will eventually go. While we may anticipate a pullback, its not prudent to trade on what you believe the market will do. Patience is a virtue, especially in trading/investing. We will issue an ALERT if there is a change in market posture.
Reports this week include: Retail sales (8/13), Initial Claims (8/15) and Housing Starts and Building Permits (8/16).
$tockMarketDirection is in a Bullish Posture. We strongly encourage our many bloggers/followers to monitor positions closely, exercise proper money management strategies and to monitor $tockMarketDirection for ALERTS that we may issue advising of a change in our current bullish posture. Cha-ching.
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