This Part is Still Scary …Even if You Saw This Movie Before…

Jordan Kimmel |

stock market correction, stock market pullback, stock buying dips, scary stock market

We all have emotions. Even if you try to operate in the stock market without any emotion, it is really difficult. Even if you fully expect an overdue correction, when it does finally arrive, you still see most market participants get nervous. Market corrections are scary. Watching your gains disappear and your account value shrink is difficult to handle and just like a scary movie–even if your saw it before–it is hard to control your emotions.

Over the last several weeks I tried to give our investors advanced warning of a textbook correction that was unfolding. The leadership started to get narrow, the advance/decline turned down, the new high/new low lists started to flash warning signs- all signs were in place that the market was ready to provide a real scare. Even though many individual stocks are already at my “wishlist” prices, I think the high volume down spike still needs to happen. I am very confident this correction will be a "Knockdown, not a Knockout” – but strangely the market has a way of clearing out weak-handed investors just prior to a major advance.

Judging by the tone of the newspapers, I expect we will see this downside clear-out move play out fairly quickly. Now is like the time in the scary movie when the music gets loud and weird. This is when, if you saw this movie before, this part is still scary. Buy the fear when it’s really scary.

Long: Emerge Energy Services LP (EMES) , Omega Protein Corp. (OME)

Shorts: NetSuite Inc. (N) , Chico's FAS Inc. (CHS)

By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU). 

 
 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
EMES Emerge Energy Services LP representing Limited Par 12.61 0.15 1.20 770,982
CHS Chico\'s FAS Inc. 16.55 0.42 2.60 2,443,406
N Netsuite Inc n/a n/a n/a 0
OME Omega Protein Corporation 25.45 0.45 1.80 124,141

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