Waiting for the other shoe to drop?
Hump markets are those that have risen to high levels during what is still considered to be a bear phase. Given their recent surge, these markets are at short-term tipping points. If bear trends remain in tack, having these markets in overbought territory make them sell-on-hump candidates. If however, the recent surges help to establish new bull trends then new long candidates are on the horizon down the road. Establishing new longs on these markets now is not recommended as the strength of their trends are still bearish by nature. Take a more wait and see posture. Should these markets continue to rise, look for opportunities to establish long positions. To assist in finding these opportunities, our Dip Market List provides candidate markets that are in established bull trends that have fallen to over sold territory.
Hump Market Definition:
Hump Markets: Strong bear markets that are also short-term overbought
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