We'll know if we're in a correction. You'll be able to just count and see for yourself.
And you'll see the list of new 1-month lows expanding, new 3-month lows, and then new 6-month lows, before you ultimately see those big surges in new 12-month lows.
It's a process, not a single event.
You'll see breadth deterioration, and then well after the fact, they'll announce that stocks are in what gossip columnists call, "Correction Territory". The worst offenders wait even longer and then proclaim that stocks are in "Bear Market Territory".
These are all made up fairytales about arbitrary numbers without any statistical significance whatsoever. It just gives the gossip columnists something to gossip about.
Whether an index is down 10% or 20% or 9% or 20.5% doesn't matter. It's what the components underneath the surface are doing. We know. We've actually taken the time to look. I would encourage you to do the same.
Also, individual stocks don't go into "Bear Markets". You see, corrections and bear markets are a function of the overall environment. But they don't teach them those sorts of things in gossip column writing school, because, well, why would they?
Let's remember. We're investors. We're traders. They are not. We don't have to make things up. They do (or think they do). We can just focus on the math itself. They have to tell stories for a living.
You see the difference?
So if you're in the business of making money in the market, whether for yourself or for your clients, then you're not going to want to miss what we talked about last night.
This was our very first LIVE Monthly Charts Strategy Session, where we reviewed where we are in the cycle, what some of the potential headwinds could be for this market, and more importantly what the tailwinds could be over the next 2 quarters.
If you want to be more prepared for 2025 and know you have an entire team of professional analysts and traders navigating this market along with you every single day, then Allstarcharts Research is for you.
CLICK HERE to access to last night's video and trade ideas.
I'll see you in there!
JC
