Market Correction Is Here
Posted by Frugal on May 12th, 2006
One more short post today.
It looks like market correction is here already. Next week is an option expiration week. Maybe there will be a small bounce. Personally, I will be getting out some of my stocks if such a bounce comes. The head & shoulder formation is broken in many sectors, and this is one of the more reliable technical indicators. It looks like Hindenberg Omen is correct after all. Fed is really losing it across all markets. I was wrong. I think a bigger correction in the general market and probably precious metal market may happen.
I must admit, I’m not such a good trader, but more of an investor. So take my advice with your own judgment.
More related posts:
Digg it Del.icio.us Reddit Furl BlinkList Newsvine Yahoo MyWeb
May 12th, 2006 at 9:04 am
First time reading your blog, great stuff. I just wanted to chime in and say I agree with you about the correction: things are too complicated for even the fed, and everyone is picking up on that (inflation v. sluggish economy). Look at some of the former leaders tanking ahead of the market, I think the next few months are going to be very telling. Again, great blog.
May 12th, 2006 at 12:07 pm
Thank you very much for your complement. I really appreciate it.
May 12th, 2006 at 12:18 pm
Interesting post…I’m debating when to invest…maybe I’ll put it off for awhile since I’ve been putting it off for so long already lol
May 12th, 2006 at 12:29 pm
Because the bull market has last more than 3 years now, we are overdue a significant correction. Whether the correction will become a longer-term bear market, I don’t know. Next year is an election year cycle, and stocks tend to go up. I hope that this correction will last less than 6 months, but it should last at least 3 months. There are many people out there calling a resumption in the long-term cyclical bear market. I hope that they’re wrong, or if they’re right, they’re only right in the sense that stock markets are crashing in terms of gold value (which is so true by the way).