Gary’s short note on markets!
February 24,2016
It’s happened again! Since it has happened again, we felt it necessary to send out the most important characteristic of a bear market. And yes, we coined this term during the last big bear market.
“Bear market rallies are sharp, quick, make you feel good, suck you in and bury you soon after.”
Eventually we will get a better rally in time and price but:
The major indices ran right into the declining 50 day averages (a place we have told you where selling shows up in bear markets) and are again turning down. At this juncture, we will just let it play itself out. Obviously, if recent lows get taken out, get out the big umbrellas but will cross that bridge if and when we get there.
Another clue was the recent action in the financials as they acted horrid even with the market romping and stomping for a few days.
The only area emerging bullishly to the long side continues to be gold and gold stocks. We will leave it at that for now.
Stay tuned.
Gary Kaltbaum
Learning to trade the market in both directions is critical to the new investor. Trading with liquid options skewed to major moves to either direction a must.
Yup, everything has now broken down…we had the washout to the upside on Monday.
Would this typically be a selloff into the close when the bear shows up again? or would it be a jaggy trend?