Market Correction

[dimpy.handa]

The tendency of the financial market to move in a certain direction over a period of time is commonly called market trend. There are three different kinds of market trends: secular, primary and secondary. Secular market trend is a long-term trend and lasts about 20-25 years and consists of a series of primary trends. A primary trend is that which lasts about a year or a bit more. Secondary market trends are short-term market changes in price direction and last for a few weeks or a few months. Market Correction is a type of this secondary market trend that sees a price decline in the range of about 5-20%.

 

[dimpy.handa]

Major market correction unlikely, good time to buy quality stocks:The domestic stock markets seem to be oblivious to the dire predictions surrounding them about double-dip recession, Hindenburg Omen, and other major predictions of doom. The decibel levels of these predictions increased last week, particularly after an unrelenting parade of bad news on the economy - notably on jobs and housing emanating from the US.