The Easiest Way To Trade A Correction

Posted by Joe Duffy | Jan 27, 2025 | Joe Duffy's Trading Advantage | 0 |

Last week we forecasted a short term rally within the context of a larger sideways movement and that is what we got. Within that longer term sideways movement, the greater risk is still to the downside. This market needs a “time correction” as much as anything.

So whether we end up sideways in a range for months, or we have a sharper downside correction, the next few months don’t look very bullish. The weakest index is the Russell. The Russell ETF is IWM. If I am trading the short side, that is where I will be focused in terms of the broad averages. It is pretty likely both Scoupe and X Ray give a short sale in IWM on Monday.

Thanks

Joe

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Joe Duffy

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