Is The Market Correction Over?

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Thursday, the 10th of October.

Yes, I believe that the current correction has come to an end with yesterday's market action. Markets are heavily oversold at this point and I expect to see a relief rally starting today.

Several of our MarketClub members stated that they expect to see some sort of agreement out of Washington in the next few days. I happen to agree with their thoughts and if that happens, it could instantly repair the downside pressure on the markets.

Apple (NASDAQ:AAPL) is looking more and more interesting, particularly if it closes today over the $491.10 level. Should this happen, it will have created a mini base in which to propel Apple to my "line-in-the-sand" level at $497. Apple could go into overdrive if this level is broken on the upside any time this week.

Apple will be unveiling a new iPad on the 22nd of this month and may have a few surprises in store for the market. Apple will also introduce the final version of its new Maverick operating system.

The recent downside pressure in the markets has pulled the stock of Amazon (NASDAQ:AMZN) back 61.8% from its recent high, which represents a perfect Fibonacci retracement. The retracement also dovetails very well with our last Trade Triangle buy signal at $298.88. With our Trade Triangles remaining positive on this stock, I believe we could be at a low-risk buying point in this market.

Like Amazon, Facebook (NASDAQ:FB) has also seen a 61.8% Fibonacci retracement from its recent highs. With all of our Trade Triangles positive, I continue to like this stock from the long side.

I also like the stock of Talisman Energy (NYSE:TLM). With all of our Trade Triangles green, combined with the fact that this market has pulled back from its recent high, I think it's a good time to be a buyer of this stock if you are not already long based on our Trade Triangle technology. Going into this winter, I believe that energy is going to be a valued commodity. With any position you take in the market, please use money management stops to protect your capital.

Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

16 thoughts on “Is The Market Correction Over?”

  1. Hello,

    Many Thanks for the INO.com Traders Bloc. I am new here in this air. It is great to reed INO.com.

    1. Gotthard,

      Welcome, the air is friendy here at INO.com where our mission is to help you become a more successful trader/investor.

      Thank you for participating in the conversation.

      All the best,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  2. No the correction isn´t over! The market is far too greedy and hears only what it wants to hear. The Reps have used this to leverage with the market the pressure on the Dems. It will be difficult to resist the build up pressure with this market move but the Rep message is only a new dress for the same conditions which don´t meet the Obama priority : Open up the Government. When they agree I am suprised! I expect a disappiontment als in the Market tomorrow!

    1. Joannes,

      Thank you for your feedback. Much appreciated. The markets are very emotional now and one should be careful.

      Thanks for your view point and comment.

      Regards,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

    2. You think of total market correction, but with respect of single investment/traiding decisions, Adam might be right.
      Market has climbed to new highs, and a correction will occure from time to time. But for the near future, I woud't worry to much. Basis data are good, and even Obamacare, which very likely will pass Congress sooner or later, is an economical stimulus for American's economy.

  3. The market is going to start moving up - and by the time most people start believing it will go up, we will be at 16k.

    All of the conditions for the market to make it to 20k are in place. We have Government Spending about to be re-approved, Corporations experiencing near record levels of low interest loans. The final piece will be once hiring starts to climb again (which we should start seeing the typical seasonal spike soon).

    1. Hal,

      Thank you for your feedback. We are all rooting for the scenario you paint to happen.

      Appreciate your view point and comment.

      Thanks again,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  4. This is not the bottom, look at the 6 month S&P 500 chart, chart the 20 day Bollinger, We are currently at the third top or right shoulder now but the trend is still down, when it changes to up that is a safer time to jump back in. We have the debt ceiling issue, the Gov shutdown, and if the Debt limit is not raised the Gov can pay its bills for 1 Nov but the real default will happen 17 Nov when they run out of money completely. So historically the lowest market levels are mid Nov and last week of Dec, I would not rush in at this time. Good time to play volatility with calls and puts short term and cheap time value in the money or out of the money based on daily potential swings though.

    1. R.D.

      Thank you for your analysis of the current market and the debt debate in Washington. I think the low we saw on Wednesday is probably going to hold up for a while.

      We will see how things work out after the 17th passes.

      Thanks for your view point and comment.

      Regards,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

    2. If you ask me, Obama is right with his claim, that if he wants to get an agreement with Republicans about budget, the agreement should have a good basis, both in Congress and Senate. It's better to have a long-lasting agreement, than a short one, made on ideological pressure. They have of course to negotiate further about the budegt, but Obama should not follow the pressure. Of course it would be better for him, that shutdown will end as soon as possible, but not for the sake of a bad, short-term agreement with enduring clashes about budget.

  5. CORRECTIVE FACE IS ALMOST OVER FOR A WHILE, ALSO WE MAY FOUND UP TREND IN DOW UP TO OR IN RANGE OF 15,200 TO 15, 350

    HOWEVER, ALL SUCH CORRECTIVE ARE QUITE ILLUSIVE, AND MOSTLY FOLLOWED WITH SHARP FALL, SO THIS RANGE TOO, IS VERY CRUCIAL TO SUSTAIN, AND ANY FURTHER BULL RUN ONLY CAN CONFIRM AFTER GETTING MINIMUM 3 CLOSE ABOVE SUCH MARKS.

  6. TLM seem like the greatest value! I have heard this mentioned other places as well. I also like the gold trade when it is ready. Please comment on gold, silver, nat gas, and oil in all broadcasts and suggest their etfs and favored stocks in those sectors. I use the triangles in all my trading do decide on short intermediate and long term trades. It is am imperative tool for my most successful thrading this year. Thanks Adam Jeremy and your staff for all you do.

    1. Sarah,

      Thank you for your kind words.

      TLM is just a fraction hgher on the week and technically it still looks very positive from were we are sitting.

      Thanks again for you kind words I will pass the along to Jeremy and the rest of the staff.

      Regards,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

  7. Yes
    OVER
    I think the muppet democracks will finally come to their senses and talk to the republicans.
    I mean they want to talk to Terrorists , they want to talk to Syria, who gasses their own , they want to talk to Iran .
    But they ( the democracks who love trees and Prius ) wont talk to Rep.
    But they will.
    Then the market will go up.
    Then commodities will rise.
    The dollar will rise.
    Gold and Silver will break out and go on a tear in the next few months
    Heating Oil will go on a tear ..
    and the democracks will want to hug tress and make illegals Democracks so they can have more sheeple.

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