Despite Fears of an Imminent Market Correction, Several Bullish Chart Patterns Emerge- Part 1

Assuming the market will be able to continue to hold itself up, there still isn't a shortage of buy-able chart setups on certain stocks. Sure, the next batch of breakouts and moves may be from more speculative issues, but when the object is to make some money and a decent return, who cares? This is definitely becoming a traders market.

The fears of a correction stem from two sources. The first source is the fact that the market has been performing "too well" and that it is technically due for a pullback. The second may stem from the speculative nature of the stocks that are starting to appear. There are many new and speculative issues with no earnings making new highs. Many of them are China stocks. This action is similar to the dot com era where risky, debt-loaded issues began to appear and make huge moves based solely on the fact that they were Internet companies. Could we be seeing the same thing with China stocks? My opinion is, not yet. As euphoric as the move in China stocks has been, it wasn't that spectacular.

The only thing that I'm implying is to use caution. The trend is still up and that simply means to continue to buy. Of course, one should be more cautious when dealing with speculative issues. For instance, do not put as much money in a speculative issue as you would in a higher-priced stock with an earnings track record. It is not worth risking it. I use the same strategy and always allocate less funds to speculative stocks.