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This is also the time to get your ducks in a row on your 401k strategy

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Market continues to be under pressure. Selling breadth however is weak. We are looking at a slow sell off. Individual stocks that are missing earnings are getting taken to the cleaners. 
There has been a clear slowdown in earnings growth and especially revenue growth during this earnings season. That is being priced in to market.
However market is forward looking mechanism and it will move based on expectations of upcoming earnings in next 3 to 6 month. 
Corrections like this are healthy for market and lead to change of leadership. This is the time to start looking at potential leaders. Stocks which continue to be ranked high on momentum tend to lead the next up leg.
This is also the time to get your ducks in a row on your 401k strategy. The best time to make money in 401k is if you time entries with  market corrections and weakness. Market corrections give you that opportunity. The Stockbee Lemonade Strategy for 401k is up 20% year to date in restricted account with limited choice and up 56% in unrestricted account.  The strategy is currently 75% in cash. 
In the immediate  short run , the market is at extreme level as calculated by mean reversion indicators like RSI2. That tends to lead to bounce.
Bounce does not mean the downtrend has reversed or the correction is over…..


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