Is it possible there will be no correction
I know everyone expects one and maybe that is why we will not have a correction.Can stocks just keep going higher with no pullback.How can someone predict when it might come ? Do you put much faith in the charts,macd to predict what will happen?...Thanks all
TA attempts to "predict" the future by using indicators that tell you "what happened". Use those indicators with higher probability, or you become another trader acting on the same indicators others are using. Greater fool.
You assume "most" are looking for a pullback.
Don't let yourself be fooled into thinking a message forum's posters are part of the "smart" money.
"Dumb" money exists at all levels.
The market will do what it will do.
A bias is great if it came from sound reasoning. The "action" of that bias is the key!
I would recommend reacting to what the market is giving you as opposed to guessing.
Just a thought....if it doesn't make sense, think a little deeper.
The little "correction" blip last week...I was holding overnight so I took a hit but if I had just dealt with that loss & sold it all & watched for the day instead of trying to make up for it all that day by chasing something going down & down, I'd be back to even where I was right now. Live & learn hopefully.
The thing about the market is anything is possible. I think we'll see a correction based on commercial real estate, prime loan defaults, and downside earnings surprises in Q3, others disagree totally. Plan for both
There will be correction somewhere down the road but how much higher will S&P goes and when it will correct is difficult to tell.
S&P can go above 1100-1250 with this small pullbacks it has been giving so far.
It is safe to buy any dips when market is too negative. Shorting is difficult compared to buying dips since March.
Also Indices may not pullback much but they will consolidate in some range so buy the Individual stocks on pullbacks or buy the ones which goes higher when Indices consolidate.
There are lot of stocks which will outperform when Indices consolidate or pulls back!
Bottom Line: Buy the dips(scale in small if you are worried) till the time it stops working and place your stops! Obama along with GS might keep on killing the bears for longer period than anyone can think!
I am bearish but then shorting will not make me any money so trade the price action. Also don't hold anything big overnight because one day you will cry! Day trade on the long side till it works and swing small with limited risk!