What to look for during a Bear Market Correction?
JS-Masterclass #4: What to look for during a Bear Market Correction?
Many undisciplined traders have suffered significant losses during the current bear market correction. Professional and disciplined traders are staying on the sidelines and preserve their hard-earned capital while waiting for better times.
The good news is that every bear market will eventually turn into a bull market and new opportunities will show up when only very few people expect it. Leading stocks emerge from bull markets, sometimes long before the major indices reach their lows and start a new uptrend. History shows that more than 96% of superperformance stocks emerge from bear markets or general market corrections.
Most stock market experts are aligned that the current bear market will end soon, some say it bottomed already.
So what to do now?
Continue to do your homework while the market is down and you will be prepared to make big profits when it turns up.
Stay disciplined and look for the following:
1. Stocks hitting the 52-week high list.
2. Stocks that corrected the least amount during the market’s declining period trading within 25% of a 52-week high (the closer to a new high the better).
3. Stocks that surged in price off the market lows (the largest percentage movers).
4. Stocks that are base-building and consolidating within the context of a long-term uptrend.
5. A proliferation of stocks setting up and emerging through proper buy points out of bases.
6. Accumulation in the major averages at or around the time the leaders start breaking out.
Many undisciplined traders have suffered significant losses during the current bear market correction. Professional and disciplined traders are staying on the sidelines and preserve their hard-earned capital while waiting for better times.
The good news is that every bear market will eventually turn into a bull market and new opportunities will show up when only very few people expect it. Leading stocks emerge from bull markets, sometimes long before the major indices reach their lows and start a new uptrend. History shows that more than 96% of superperformance stocks emerge from bear markets or general market corrections.
Most stock market experts are aligned that the current bear market will end soon, some say it bottomed already.
So what to do now?
Continue to do your homework while the market is down and you will be prepared to make big profits when it turns up.
Stay disciplined and look for the following:
1. Stocks hitting the 52-week high list.
2. Stocks that corrected the least amount during the market’s declining period trading within 25% of a 52-week high (the closer to a new high the better).
3. Stocks that surged in price off the market lows (the largest percentage movers).
4. Stocks that are base-building and consolidating within the context of a long-term uptrend.
5. A proliferation of stocks setting up and emerging through proper buy points out of bases.
6. Accumulation in the major averages at or around the time the leaders start breaking out.
Combing the BEST of two WORLD's: Cathie Wood & Mark Minervini
