E EC A Yogi Berra Stock Market

Let’s start with some housekeeping issues, since I left Barron’s a few weeks ago I wanted to take a break from writing about the markets. But since you found me here on an off-Broadway website (don’t tell the owners) you know it is hard to let go. Therefore, I’ll probably jot down a few thoughts from time to time in various locations and unlike my time at major investing websites, I’ll welcome the comments. Unfortunately, 90% of the comments there sought to educate me about how stupid I am and the 10% that had legitimate questions and thoughts were lost in the shuffle.

If you’ve been following me at the (free) weekly Midday Market Call webinar with Ally Invest, you know that I’ve been talking about preparing for a correction for several weeks. The bottom line was “stay long but prune the underperforming stocks and build up a little cash.”  Not bad for this market and for every other market that seems to be a bit out of hand or extended.

Now that the Dow is down more than 1000 points in just a few sessions – and that does not include Monday’s whoosh opening with a 350-point BTFD* dip – we now have to ask whether it’s over or not.

That great stock market analyst Yogi Berra has an answer for both bulls and bears. It ain’t over.

It ain’t over for the correction or for the bull market?

The answer is yes. Both of them ain’t over.

Now that I’ve washed my word processor out with soap for writing that word three times, let’s look a bit deeper into what is going on.

First, the big picture – the bull market. I think there is plenty of life left in this market because nothing really changed technically over the past two weeks. Sure, it was a big decline and the so-called fear index – the VIX – jumped to a level not seen since the election. Remember how fearful half the country was back then?

Remember, also, that it marked the start of a rootin’ tootin’ rally.

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Disclosure: No positions in anything covered.

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Barry Hochhauser 2 years ago Member's comment

Good read.

Harry Goldstein 2 years ago Member's comment

Will you be posting your midday market calls here as well?

Michael Kahn 2 years ago Author's comment

No, I will not post them here. However, you can always view the stock i cover at my website http://quicktakespro.com/COTD.html. Ally does some sort of archiving.

Harry Goldstein 2 years ago Member's comment

Thanks, I'll keep that in mind though I do try to get all my content from as few sites as people. This being one of my favorites.

Michael Kahn 2 years ago Author's comment

August saw a significant pullback that caused the moving average cross/ whipsaw. It also created an anchor point for the trendline mentioned.

Alexa Graham 2 years ago Member's comment

You mentioned August twice - would you mind clarifying the relevance? Thanks.