All Savvy Market Investors Are Prepared for a 10% Correction

All Savvy Market Investors Are Prepared for a 10% Correction

All Savvy Market Investors Are Prepared for a 10% Correction

$DIA, $SPY, $QQQ, $VXX

All savvy investors know that it is just a matter of time before this Bull market leg hit end and the market will have a healthy 9-11% correction.

A 10% correction could come at any time, and particularly when the market has done as well as it has done.

It has gone straight up since Donald Trump was elected our President

The market is overbought and investors are optimistic. An overbought market with overly optimistic investors is vulnerable.

Big Q is what will trigger the vulnerability?

Keen market observers also know that the market could just pause to refresh, and not hit a long slide.

Strong earnings and solid economic growth have pushed stocks to record levels this year and Republican efforts to cut corporate taxes have added to the momentum.

The Senate Republicans Wednesday agreed to talks with the House of Representatives on the tax bill amid early signs that lawmakers could agree on a final bill ahead of a self-imposed 22 December  deadline.

President Donald Trump and Congress are in discussions over the passage of spending legislation has raised fears of partial shut down of the federal government, the House has agreed not to shut down, expect the Senate to align Friday.

Thursday, the US major stock market indexes finished at: DJIA +70.57 at 24211.48, NAS Comp +36.47 at 6812.83, S&P 500 +7.71 at 2636.98

Volume: Trade on the NYSE came in at:824-M/shares exchanged

  • NAS Comp +26.6% YTD
  • DJIA +22.5% YTD
  • S&P 500 +17.8% YTD
  • Russell 2000 +12.0% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.64) Very Bullish (0.51) Very Bullish (0.73) Very Bullish (0.67)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.49) Bullish (0.46) Bullish (0.44) Very Bullish (0.58)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.50) Neutral (0.07) Very Bullish (0.77) Very Bullish (0.67)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.33) Neutral (-0.23) Bearish (-0.46) Bearish (-0.29)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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