First things first: Don't panic. The raging, grinding bull markets are "officially" in correction territory.
It's a healthy thing.
Though I've been consistently bullish in my outlook over the past year or so, I've said that a 3% to 5% dip in the markets might be in order and that a correction like this would be welcome.
Why? It's not that I enjoy watching stocks fall… unless I'm planning to recommend that my readers play the "rubber band snap" (although, I did, and they made a quick 50% gain).
Rather, this downturn is good for the simple reason that we needed to see that capitulation.
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.