|...Until Morale Improves
The above is a famous saying that some folks attribute to Pirates. While others playfully assume this is the code of conduct for some barbaric corporate management teams.
But over the past couple of weeks this seems like the right slogan for stock investors...especially those who have ventured outside blue chips to smaller, more growth oriented names.
Technically speaking the next area of support is the 50 day average at 1838 and below that is the psychologically important 1800 level. However, I have found that the pattern below often signals the last throes of a short term correction.
When you have an extended sell off period there is often a day or two when stocks try to bounce. Maybe even rush up as much as +1% early in the session. All of a sudden stocks violently head south once again. It truly makes investors feel hopeless. And from that darkest moment is when the dawn emerges.
The above information should point out when the beatings end. Just make sure you still have money in the market to participate in the well-deserved bounce.
• Roundtable Top Picks for the week of Apr. 7th
• 4 Growth & Income Stocks Beating the Market
• Technology Stock Roundup
• The Advantages of Paying Estimated Taxes
Steve Reitmeister ( aka Reity...pronounced "Righty" )
Executive Vice President
Zacks Investment Research