When to Buy the Correction

For the second day in a row, stocks shot off to a hot start, only to trickle lower and finish slightly in the red. Wednesday, July 3rd, 2013     When to Buy the Correction   Taming the "rip 'n dip" market Summer doldrums sink stocks Plus: Why are you even reading this?   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Another day, another "rip 'n dip" market… For the second day in a row, stocks shot off to a hot start, only to trickle lower and finish slightly in the red. Once again, the major indexes failed to reclaim enough territory to buck the short-term downtrend. Tuesday also marked the fourth day in a row that saw the Dow fell back right at its 50-day moving average. But don't worry— you can untether yourself from your computer monitor early today. The markets close at 1 p.m. And thanks to Independence Day falling on Thursday, we get a lonely Friday trading session to finish up the week. Expect low trading volume through Friday. Even though this is a slow week, it's still important to get your bearings. If stocks do follow through with another move lower, where will they land? I think we'll see the broad market sneak lower from here. Futures are a little off this morning, upside momentum is gone, and we're entering the summer doldrums. All of this adds up to a sideways or falling market for a little while—which is great news for investors. No, I'm not suffering from heat exhaustion. This correction is actually a good thing. Let the market bleed out the latecomers. Get the bull market stories back off the radar. That will set us up nicely for a meaningful bounce toward the end of the summer. My best bet is that we see stocks bounce as the S&P approaches 1,525. That's the area that will provide you the perfect low-risk entry point for new investments. As for right now, the game plan remains unchanged. If you're stubbornly sitting on open gains, take a little off the table. You'll have a chance to buy again soon enough…     Rude Numbers Targets, Predictions and Wild Guesses   $101.34 buys a barrel of crude today. This marks the first time oil has traded in the triple digits since early 2012… $10 billion flowed out of PIMCO's largest bond fund in June. The massive fund saw an absolute wipeout of net inflows over the past few months – 2.9% this year so far, to be exact… 235,643 new Fords left American car lots in June, up from 207,759 a year ago. GM and Chrysler both posted sales growth too, as the auto industry roars back to life. $88 buys a Bitcoin this morning. That's the alternative currency's lowest price since its April crash. 188,000 jobs were added by private companies in June, according to the ADP employment survey released earlier this morning. That's up from 134,000 in May…     Rude Trends When to Buy... When to Sell   "You fascinate me with all of your random predictions of which way the market or gold will go!" writes a sarcastic reader. "I think of you as someone blinded standing out in a field predicting which way the wind will blow in a few days. No explanation of your reasoning other than comment about how the wind has blown in the past." You're absolutely right. What the hell do I know? I just sit here at this computer pulling numbers out of a hat. When that fails, I consult the moon and the stars. Or I'll take a nap. Perhaps some answers will come to me in the form of a dream… Anyone with half a brain knows that all markets move on serious economic news covered in detail by the mainstream financial press. Just flip on CNBC, take some notes on what the six talking heads say about the sequester or tapering, and make a million or two. Rinse and repeat. It's that simple. I don't even know why you're reading this... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   Pays Up To Three Times Per Month, Tax-Free Exposed after 3 decades: The 'lost' gold bible Congress never wanted anyone to see. World oil production is about to be shaken to its core...     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary:         To end The Daily Reckoning's Rude Awakening e-mail subscription and associated external offers sent from The Daily Reckoning and The Rude Awakening, click here to unsubscribe. Please Note: If you unsubscribe from The Rude Awakening, you will also be unsubscribed from The Daily Reckoning. The Daily Reckoning's Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. 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