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IBDvalueinvestin (98.47)

Rotation to safety - theme ahead of Sept-Oct



July 23, 2014 – Comments (2) | RELATED TICKERS: SOXS , SOXL , SQQQ

The big boys return from summer vacations soon and those that have inside track on their trading strategy will decide the short-term market move but once the big boys are back in town anyone on the wrong side of the trade will feel big pain. This market is overheated in the short-term and historical norms suggest a 10% minimum correction. If that does not happen in Sept then we are headed towards a 1987 market type crash in Oct.

2 Comments – Post Your Own

#1) On July 23, 2014 at 5:02 PM, EnigmaDude (58.61) wrote:

Well I don't agree that it will be that big of a correction or "crash", but I do agree that we are likely to see a sector rotation in the fall unless something happens sooner to cause instability in the markets (like Russia in a war with everyone).

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#2) On July 24, 2014 at 11:47 AM, awallejr (34.04) wrote:

It is always easy to call for an October crash since we had two in memory, 1987 and 2008.  But we also had plenty Octobers that were great.  Afterall this latest leg up started in October 2011.

But why people keep worrying about corrections or crashes is just silly.  You wind up missing out on tremendous gains constantly fretting about a downturn.  If you survived the 2008-2009 crash you survived the worse.  Look out over decades and invest accordingly, taking advantage of dips. Now should interest rates ever see double digits like late1970s and the 1980s then yeah cash would own, but not at1%.

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