Catching a falling knife.
Dip markets are those that have fallen to short-term oversold 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 tack, 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 by 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:
Dip Markets: Strong bull markets that are also short-term over sold
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