Farley: A Tough Spot to Be Long
Stock quotes in this article:SPY
Every correction since 2003 has found a way to tag the bottom of the weekly Bollinger Band, which is a scary thought because the bottom band is very close to the bear market low. The good news is that the band will move higher during a correction as it responds to the shift in price direction.
The worst thing that investors and long-term traders can do right now is ignore the risk of an overbought market sitting near major resistance. That casual attitude has cost market players dearly in the last two years. In other words, it's the wrong time to turn a blind eye to the ugly lessons of this bear market and resume an outdated buy-and-hold mentality.Alan Farley provides daily stock picks and commentary with his "Daily Swing Trade" newsletter.>To order reprints of this article, click here: Reprints
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
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| 12,890.46 | 1,351.95 | 2,927.23 | 20.47 |
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