IBD Contrarian Indicator

Discussion in 'Trading' started by cszulc, Sep 16, 2008.

  1. cszulc


    Got this email from IBD today, take it for what its worth. Often these can be seen as contrarian indicators.

    Dear Investor,

    The market outlook is in a correction, and you're probably hearing a lot of bad news with the 500–point drop in the Dow on September 15 – especially in regard to the financial sector.

    All of us at IBD understand that it's easy to feel nervous or have questions at a time like this. But we also know that countless individual investors, just like you, have weathered challenging market cycles by following a sound set of buy and sell rules. We can't stress that enough.

    In a downturn like this, the best strategy is to remain in cash.

    Don't attempt to make new stock purchases, even if you hear a tip about a so–called “great stock,” or notice a stock that seems to buck the market trend.

    To help you get through this correction and make sure you're ready when the market inevitably rebounds, we invite you to view our Daily Stock Analysis and Market Wrap videos each trading day. These videos will help you do two of the most important things you can do during a correction: (1) build a powerful watch list, and (2) spot when the downturn has ended and a new market rally has begun.

    Daily Stock Analysis:

    Market Wrap:

    If you have any questions about the videos, tools at Investors.com or the CAN SLIM Investing System, please call us toll–free at 1–800–664–2013 or e–mail us your questions.


    Kate Stalter
    IBD Market Commentator
    Investor's Business Daily