The current bull market began on March 12, 2009. So next month, we’ll be two years into the current bull cycle as of next month. Typically, bull markets have lasted from 18 to 24 months, but have lasted as long as four years.
As of the close on Wednesday, February 2, the current stage was "Market in confirmed uptrend." If you see distribution days (i.e., days of heavy selling) start to mount, the outlook could change to "Uptrend under pressure."
If you get 5 to 6 distribution days over any 5-week period, the general market almost always turns down. In that case, the Current Outlook in The Big Picture would change to “Market in correction.”
A typical intermediate correction (which is normal and healthy) can be 10% to 12%. A more serious correction of 20% or more would indicate the emergence of a bear market — marking the end of the previous bull cycle.
At this late stage of the bull market, it is important to note the following:
Beware of Late-Stage Bases
Cut All Your Losses Short
Continually Refresh Your Watch List
Keep Your Eye on The Big Picture
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