Analysis Of Market Trends During A Correction

Well, we had nice update in the market yesterday. Today, the markets are on another upward tear.

Looking at the charts, this market remains dramatically oversold. It is not surprising that we are seeing some significant buying at this point in time. The markets have sold off more than 10% during this most recent correction. It is during such corrections that investors are likely to step in and add to their long term equity holdings.

If you are long-term investor, you made very well be part of the buying. For those with a shorter term perspective, you will want to be somewhat cautious because it is not clear that the correction is over. There remains a significant concern that the US economy is on the verge of recession.

If you are considering "getting along" in a particular stock or index product, remember the old saying "the trend is your friend, except at the end." It may be prudent to perform some analysis of the current trend. Obviously, this can be done utilizing any stock charting or technical analysis platform that you may choose.

For those who are less confident in their own abilities, you might consider taking advantage of a complimentary service. Just type in a ticker symbol and your e-mail address, and INO.com will e-mail their trend analysis to you.

Complementary INO.com Trend Analysis

Keeping your eye on the trend will significantly improve your odds of success. Even with the current correction in play, the stronger stocks will exhibit and maintain upward trending characteristics. Weaker candidates are likely showing telltale signs that any bullish run they have experienced is now over.

Corrections are difficult to deal with for the average investor in trader. However, for those who understand how the markets operate there are opportunities for significant profitability. So, be cautious but keep your eyes open for those opportunities that present themselves.

Trade well!

Christopher Smith
TheOptionClub.com