How to Improve Attention to Detail During Market Corrections

Note:  This article is meant to help you learn from the market and does not serve as investment advice for any specific group or individual.  For more information, please read the HSR Terms of Use.

Historical Fact on the Importance of Stocks Refusing to Base:

The 2010 Market Correction began in May and ended in late August 2010.  Throughout this bearish period, some technology stocks refused to base with the market correction.  Tech stocks that did base, broke out and rallied higher before the market bottomed in late August 2010.  The market eventually reached new bull market highs in November 2010 and went higher until May 2011.

To summarize, following the market accurately takes a lot of work to stay on top of things.

Breaking up stocks into three (3) categories will help improve your attention to detail during market corrections.

Specifically, you'll be more aware of what stocks/groups are basing, breaking out and refusing to correct (base) during a period of market weakness.

This will help you stay focused on the market because this exercise stresses the importance of using market facts and this can only be accomplished with chart reading.