By Ryan McGuire for Gold Avalanche
I've decided to stay on top of the Dow action this week. As of today, the Dow passed down through the 38.2% retrace level, but it also rose above the 61.8% level before closing below the 50% retrace level. So, one scenario that could play out tomorrow is we head toward 38.2% (12,927) and if we pass through that, we will most likely see 12,715 or lower before another rally develops.
(Click the picture to enlarge)
In an investment sense, this is all to say that buying opportunities of solid 'glocal' companies could be just around the corner; especially for anyone who has missed the bull train since January. One recommendation for new investors is to set your bids at least 10% below market using a limit order. Another tactic for stocks that are trading off highs or within a range is to try a bid at 30% below the stock or ETF's 52 week high.
If you aren't feeling pressure to "get in" right away, or if you are very new to investing, try bids at 30% below market. You can also look at your chosen stock's price history over the past 5 years and pick a point that has acted as a significant point of both resistance and support.
www.investopedia.com is a good resource to learn more about investing jargon and terms.
I've decided to stay on top of the Dow action this week. As of today, the Dow passed down through the 38.2% retrace level, but it also rose above the 61.8% level before closing below the 50% retrace level. So, one scenario that could play out tomorrow is we head toward 38.2% (12,927) and if we pass through that, we will most likely see 12,715 or lower before another rally develops.
(Click the picture to enlarge)
In an investment sense, this is all to say that buying opportunities of solid 'glocal' companies could be just around the corner; especially for anyone who has missed the bull train since January. One recommendation for new investors is to set your bids at least 10% below market using a limit order. Another tactic for stocks that are trading off highs or within a range is to try a bid at 30% below the stock or ETF's 52 week high.
If you aren't feeling pressure to "get in" right away, or if you are very new to investing, try bids at 30% below market. You can also look at your chosen stock's price history over the past 5 years and pick a point that has acted as a significant point of both resistance and support.
www.investopedia.com is a good resource to learn more about investing jargon and terms.
