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Richard's Remarks

 

This is what I call an "erosion market." It's one of the nastiest types of markets that you'll ever have to deal with. It's illustrated in the Dow chart by a large cluster of back and forth movements, appearing almost like a solid block of fluctuating movements. This is a market where you buy a stock and a day later you're sorry you bought it as the stock suddenly drops 10%. By the same token, this is a market where you short a stock and a day later the stock rallies six points and you're stopped out. An erosion market can be as costly as a bear market. Ten minor losing trades, when combined, can add up to one large, nasty loss. I've asked my subscribers to stay out of this market, because an eroding market can murder any portfolio over time.

 

I thought Friday was a key sentiment day. On ... Log in or subscribe to continue reading.


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