(By Mike Swanson) I just did this video answering an email question someone sent me. On Friday I did a video saying that I was planning on taking some big investment positions in the stock market and then Sunday I wrote a report saying I thought the stock market was going to drop again into the Fall. This person found this to be confusing. And if he is confused I'm sure there are others confused too.
The truth is I like to INVEST after corrections. So when I talk about planning to take investment decisions the idea is to take advantage of something after it has dropped and not to buy into rallies or "hot stocks" on TV. So I was starting to anticipate a continuation of the correction that really began in April when I started to talk about getting ready to invest later.
The title of that Friday video was The Coming Investment Point and What I Plan to Do With It - the key words in there are "coming investment point." I think the market correction in April never ended and will end in the Fall. We've also seen bear markets all over the place that have been going on for a year that probably will end in the Fall too - like in gold stocks. When something drops for over ten months as much as gold stocks have that's called a bear market. But they have fallen so much that they may start to hold up into the Fall as other markets that haven't fallen so much follow gold and Europe down.
The stock market is having a good gap down this morning, but I would be surprised if it just went straight down from here. We'll probably see a little bounce tomorrow with Apple earnings slated for Tuesday's close or some other "good" earnings news bounce later in the week. Nothing goes straight up or down on a hourly trend basis or a weekly trend basis - the weekly trend has been down since April, but because no one seems to pay attention to the weekly trend they get their ass handed to them on days like this.