There are no sure trading bets. Markets that are over sold can remain in over sold territory for extended periods (B). Eventually markets do return to normal levels (A). In the case of Dip Markets they bounce back and maintain the trend. The markets on the Dip list are simply over extended on the downside and in a position to reverse on a short term basis.
Catching a falling knife.
Dip markets are those that have fallen to short-term over sold levels during what is still considered to be a bull phase. Given their recent sell-offs, these markets are at short-term tipping points. If bull trends remain in tact, having these markets in over sold territory make them buy-on-dip candidates. If however, the recent sell-offs help to establish new bear trends then new shorting candidates are on the horizon down the road. Shorting these markets now is not recommended as the strength of their trends are still bullish in nature. Take a more wait and see posture.
Should these markets continue to fall, look for opportunities to establish short positions. To assist in finding these opportunities, our Hump Market List provides candidate markets that are in established bear trends that have risen to over bought territory.
Dip Market Definition:
- Bullish trending phase based on our Trend Level indicator.
- Short-term over sold based on our Elastic Level indicator.
Dip Market: Bullish Trend that are also Strongly Oversold
Our watch list information is strictly provided for educational purposes only. As always … trade at your own risk and analysis.
Additional links worth reviewing:
Check out what the systems are doing
All trading involves risk. Leveraged trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology is not necessarily indicative of future results.
Our strategies have not been developed based on knowledge of or with reference to your particular circumstances, such as financial position, goals, risk-reward preferences, tax situation, brokerage arrangement, investment or trading experience, and so forth. Hence no content or model published here constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. More