The market rallied for two weeks and correction will be natural.
We are not able to give any reliable forecast now and we just have to wait for meaningful market actions. Nevertheless, current uptrend seems to be strong and any retracement might be good place for entering positions (always with stop-loss orders).
Let's also take a look at global situation:
Current rally is the biggest in this bear market (almost +50% from the bottom).
Of course, the drop might continue, thus buy-and-hold strategy is not a good choice in current economy situation. Nevertheless, we should be able to earn some profits now.
Here is quite interesting article about bear markets' rallies during Great Depression, which can be a good reference point to our situation.
Sources:
[http://seekingalpha.com/article/135331-don-t-be-fooled-we-ve-been-here-before]
[http://en.wikipedia.org/wiki/Great_Depression]
[http://www.investopedia.com/terms/b/buyandhold.asp]
Posts
No comments:
Post a Comment