If the economy avoids a recession, then the current decline is approaching the avrage for both time and price.

 

As ugly as the market has been, at this stage it's time to get off the indexes and focus on leading stocks. The best names ALWAYS bottom BEFORE the averages. Now is the time to START looking for names that will lead the next bull market which will for certain to follow this correction.

"Lies, damned lies, and statistics"

Going back to 1932 there were three other times when the market started the year down more than 20% and in each of the subseqent years the market closed higher than it had ended in June. Like 1962.
 

What will be the new leadership ?

"You're not trying to be the first one on board; rather, you're looking for where momentum is picking up and the risk of failure is relatively low."

This is a bounce in a bear market and it can last for a few days to as long as a few weeks. Whenever you have durration corrections in bear markets, it takes long to bottom. Not entering rrsp now as this could fail Better to wait for confirmation. Compound from a higher equity base.

Don't forget to enjoy the ride.

 

Put things into perspective, we are only thirteen days off the bear market lows.

bears are out and feeding

The key now is how well and how many stocks can hold up while the market sells off.

What is your edge? It's your ability to apply your strategy and make it work for you. You are your real edge.

You have to have a profitable method and a consistant aproach to the markets, but you know you are your real edge and that first and foremost you have to take care of yourself. 

In your business/trading plan:"Include a provision that will keep you from trading if outside circumstances create an unusual stress", such as health, divorce, or a major move. You might as well just write check out of your trading account and kiss it goodbuy. This is a hard thing to recognize before it is to late. People LOSE money during times of ten major stresses: death, taxes, divorce, moving, health.....you get the point. Trading is a performance oriented discipline. If you can't perform well, cancel the show..... If a tenis player severly sprains his ankle, he cancels the match. Why do damage to your ratings? Why mar your statistical record with sub-optimal performance? Markets will always be there!

The market will tell you when a bear market phase is over, because stocks will start putting in higher lows, stocks will make new 52-week highs, and stocks will stop making new 52-week lows.

"Stock prices move on the basis of what people think. Ultimately, it's perception that motivates investors and creates price movement."

 

The big "if" is whether or not we're going to go into a recession. Why? Because with recession there is more work to do than without.

 

'For those of you that are young, life is short, pursue your dreams. For those who are older, life is even shorter... pursue your dreams even faster'

 bouncy

Here is the bounce, we'll see if this one can hold.

It will take more than just a bounce to establish a reliable bottom.

"With the market in correction this is where the willingness to exercise "sit out power" is the key. Remember, while you do nothing... less experienced, lesser disciplined and less skilled investors lay the groundwork for your success. They build the bases, I buy the breakouts."

 I'm in it for the long haul

Its just in my IRA (sure don't worry about your retirement..) Its a good company This is overdone The market is wrong They always come back do you think like this? Get help! 1-800-DONTBUYSTOCKSINDOWNTRENDS

Remember; If you lose 50%, you need 100% to break even.