Although a market correction is no time to buy stocks, you never know how long the decline will last. In March 2003, for example, a market uptrend began after a long bear market. (Sound familiar?) In August 2003, the first correction of that rally arrived. (Sound familiar?) Eight sessions after the correction began, it was over. (Let's wait and see.) The lesson for base readers is to be ready for the quick turnaround that is always a possibility. We're not making a prediction here. We're just saying there is no compelling reason to believe this correction will be short or that it will be long. Be ready for both scenarios. Baidu (NasdaqGS:BIDU - News) has a chart that shows the potential to provide a buy point 14o matter what happens. It's finding support at its 10-week moving average. Volume during the decline has been soft, which suggests funds aren't fleeing in droves. Should a follow-through day come quickly, and should upside volume confirm the support at the 10-week line, Baidu would be in a buy range. If the correction proves longer-lasting, Baidu's action could morph into a new base. Then, with a market turn, Baidu may offer a new buy point. Although a market correction is no time to buy stocks, you never know how long the decline will last. In March 2003, for example, a market uptrend began after a long bear market. (Sound familiar?) In August 2003, the first correction of that rally arrived. (Sound familiar?) Eight sessions after the correction began, it was over. (Let's wait and see.) The lesson for base readers is to be ready for the quick turnaround that is always a possibility. We're not making a prediction here. We're just saying there is no compelling reason to believe this correction will be short or that it will be long. Be ready for both scenarios. Baidu (NasdaqGS:BIDU - News) has a chart that shows the potential to provide a buy point 14o matter what happens. It's finding support at its 10-week moving average. Volume during the decline has been soft, which suggests funds aren't fleeing in droves. Should a follow-through day come quickly, and should upside volume confirm the support at the 10-week line, Baidu would be in a buy range. If the correction proves longer-lasting, Baidu's action could morph into a new base. Then, with a market turn, Baidu may offer a new buy point.
