The End Of The Correction-Less Fantasy Land [JPMorgan Chase & Co.] - Seeking Alpha
Chris Ciovacco has written another outstanding article about what severe corrections look like and how long they will last. It is too early to say where the bottom of this correction is. We must be prepared for the worst while there is a good chance we are close to a rebound. If the worst case takes place, the stock market could be down for months.
My guess is that we might have another 6% correction like we had earlier this year. But volatility will continue in 2014. There may be several 6-7% corrections. If we rebound from the current downturn, I would be willing to bet we will have another correction in May or June. Good stocks to buy at the bottom might be SOXL, the 3X semiconductor ETF, and TQQQ, the leveraged Nasdaq ETF. Then, when the stock market gets near its all-time highs again, that is the time to buy TVIX, the leveraged volatility index because earnings are not that good. 2014 will primarily be a range-bound market.
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