Market Correction

A market correction is a pullback that is based on the percentage that the market sells off. Usually analysts will say that a sell-off of less than 10% is a market correction and more than 10% would constitute a market crash. While the difference is negligible, a market correction is more orderly and normal, whereas a crash is more severe and has the signs of structurally breaking the trend in the market. No market moves in one direction without pullbacks and many investors view a market correction as a positive occurrence, allowing them better prices on which to enter their positions.


The NASDAQ is up 20% this year, as stocks continue to edge higher, toward their multi-year highs. Blue chips are at their highest level since December 2007. Small-cap stocks are hot, up a sizzling 3.6% so far in September, following…

The stock market risk is high right now. Maybe you should take a vacation from investing. As an investor, you should be aware that the six-month period from May to October has been historically the worst-performing months for stocks, according…

The current stock market correction has some legs, so be prepared for more downside. We’ve got gold below $1,600 an ounce and oil solidly below $100.00 a barrel—this is a broad-based market correction in investable assets and it will likely…

With the recent corporate earnings release from shipping giant FedEx Corporation (NYSE/FDX) also came some dark clouds for the future. The company issued some downbeat estimates for the rest of the year; many investors should pay attention to what this…

The overall market, as represented by the S&P 500, has had a tremendous run from the October lows. Even through all of the never-ending struggles with the European crisis, unemployment still high, and a slowing world economy, the S&P 500…

The results so far are showing a significant amount of earnings numbers that are beating Street expectations. This isn’t necessarily a difficult thing for a corporation to manage, but it’s certainly better than not beating consensus. Paychex, Inc. (NASDAQ/PAYX) just…

There are a lot of good trades to be had in this market, but the vast majority consists of momentum opportunities. It’s difficult to find stocks right now that fit the buy-low/sell-high investment strategy, because the market’s moved so much…

A lot of initial public offerings (IPOs) have hit the market recently, and that’s no surprise—the stock market’s been strong. Times have been tough in the investment banking industry, but this changed recently with the much improved sentiment in the…

Watching the charts on Monday, I noticed that the major stock indices broke below the intraday upward trend line at around 2 PM and reversed to the downside in a two-hour slide. My feeling is that the failure to hold…

Listen up folks; stock markets have had a great run, and there may be more upside moves ahead of us, as the economy continues to improve, but this is not a time to be aggressive. You have made some nice…

I must admit that the ability of stock markets to record sustainable upward advances without a correction of five percent or more has been somewhat of a surprise to me. Just when you felt that stocks may take a pause,…

Don’t get too comfy trading the markets. Yes, the bias is positive and investors continue to be bullish, as they support the market after the rally. Yet, as I see it, there continues to be market risk that could result…

The more you think a correction is forthcoming, the higher the market edges higher. The reality is that stocks have not had a noticeable correction since this rally started. This makes us uneasy, but fighting the upward trend may be…

Earnings have been largely better than expected early on. Revenue growth has been mixed and so far many companies have maintained guidance going forward, not increasing it. The reality is that corporate America continues to be apprehensive towards growth and…