Positioning Yourself In A Stock Market Correction

TL;DR

In this podcast episode, the host and guest discuss the current market conditions, swing trading strategies, and analyze some current stocks. They also address a listener question about identifying stocks under accumulation during a market correction.

Transcript

hello everybody and welcome to investing with IBD for June 5th 2019 I'm your host Arusha Pearson with me in the studio today is Justin Nielsen market research director of IBD thanks for being here Justin it's a pleasure it's gonna be fun on today's podcast we're gonna talk about the current market our swing trader product and a number of other prod... Read More

Key Insights

• ❓ The market is currently in a correction, but there have been attempts at a rally.
• 🔨 Swing Trader and Leaderboard can be valuable tools for investors in gauging the market environment and identifying potential stock opportunities.
• ⚾ Uber recently broke out of its IPO base, and Beyond Meat shows strong recent performance but still lacks a defined base.
• 💍 It's important to be nimble and remain engaged during market corrections, as they can offer both risks and opportunities.

Questions & Answers

Q: How can you determine if a stock is under accumulation during a market correction?

Looking for strong relative strength, tight price action, improving volume, and strong fundamentals can indicate accumulation. Stocks that hold up well during the correction and show tight consolidation patterns may be worthy of further analysis.

Q: Is it wise to invest in IPOs right after they go public?

It's generally recommended to wait for IPO stocks to establish a base and show a clear uptrend before considering an investment. Waiting for a proper buy point and looking for positive earnings and revenue growth can help increase the chances of success.

Q: How do you know when a market correction is over?

The hosts mention the importance of watching for follow-through days, which indicate a potential change in market direction. They also recommend observing leading stocks and the behavior of specific sectors as additional indicators.

Summary & Key Takeaways

• The market is currently in a correction, but there have been attempts at a rally in recent days.

• The concept of a follow-through day is explained, which helps determine whether the market is transitioning into an uptrend.

• The host emphasizes the importance of being nimble and ready for opportunities in the market, as corrections can also present buying opportunities.

• The discussion shifts to the benefits of their various products, such as Swing Trader and Leaderboard, in helping investors gauge the market environment and make informed decisions.