Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market: How to Achieve Superperformance in Stocks in Any Market

by Mark Minervini

Often, stocks that hold up well during bear market corrections are in their own earnings up cycle. These stocks may benefit from strong earnings and sales, new products or services, or industry changes that positively affect the company. However, a stock’s price trend may be temporarily held back or muted by the weight of the bearish primary trend of the general market. This causes a stock’s price to decline, but not as severely as the prices of other stocks. These stocks are generally very resilient and bounce back into new high ground quickly off their lows. When the bearish market exhausts itself and turns up, stocks in their own earnings up cycle will blast off and advance significantly, in some cases for an extended period. On the flip side, stocks that are in their own bearish cycle may resist even a strong market and go nowhere. Often this is an indication of an unfavorable outlook, and these stocks should be avoided.