Oct 17, 2018

Bear Market Rallies Try To Create A False Sense Of Confidence

Corrections or bear markets have rallies. So, maybe this 500-point move up in the Dow Jones Industrials Average (DJIA) is the first upward correction in the new bear market. 

There's no way to say that we have not entered a bear market. It's possible that it will be a bear market, you can't call it a bear market now even though maybe 25% of the stocks are in bear market territory. The majority are not but it's only a question of time. There are a lot of stocks that are down quite a bit but just not enough to be a bear market. 

But remember some of the most spectacular moves that you're gonna see to the upside in a market happen in bear markets. Historically the biggest up days have been in bear markets and that is to try to create a false sense of confidence a false sense of hope.

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