   
|
|
Correction
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
A market correction is a decline in price following an extended rise in price. Unlike a market crash, a correction involves a relatively small percentage decline that occurs gradually rather than precipitously. After a correction, markets often consolidate in a narrow trading range before moving upwards. In bull markets, corrections are viewed as a healthy repricing of stocks. Investors often use corrections as an opportunity to enter at more favorable prices. Many market timers use indicators and technical analysis to try and determine when a correction is likely to begin and end. The practice of going long during corrections is sometimes referred to as "Buying the Dip". Since crashes usually start out looking like corrections, going long during a correction carries risk.
Rate this correction definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |