Your Daily Bit of Wall Street Wit & Wisdom

market correction

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“A correction is any move which is against the prevailing trend, regardless of magnitude…Let go of the silly 10% notion.”
— Tom McClellan, @McClellanOsc

Yesterday afternoon, a notification popped up on my phone.  It was from a financial media outlet reporting the NASDAQ dropped more than 1% on the day to enter “correction territory,” as regulation fears battered big Tech.

Such reporting is a pet peeve I share with market technician Tom McClellan.  If the current market’s primary trend is up, the correction began just over a month ago.  If the prevailing trend is now down, a coming rebound will represent the correction in price ahead of a move to lower lows.

I may be a stickler about it, but you should have the correct understanding of corrections.

Best regards,

Steve

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