Days Like These...

Days like today are inevitable. With the majority of stocks hitting new highs, a mild correction was in the works and in fact, long overdue. Still, this does not feel like the market top, at least not yet. While there is quite a bit of market euphoria and fascination currently saturating our media and culture, there is still strong interest in equities especially from new investors and traders. The correction may continue early on in the coming week, but expect a strong reversal to signal a positive turn around. Also keep an eye out for stocks that have held up well during the last few days. Even more importantly, keep an eye on stocks that still continue to defy gravity (and market sentiment) such as LIVE. My opinion could be wrong, but I have seen this same song and dance before. Markets go up and they come down. Bull markets are characterized by many small steps forward and by a few larger steps backward, but with more headway remaining in the forward direction. In all my years investing and trading I've come to realize that it's the large up-days in bear markets that scare me, not the large down days in bull markets.