Ideally a correction would begin when stocks are oversold (RSI > 70), the MACD is crossing down through it's signal, off a double top, etc. However, for most of the ASX200 stocks this is not the present picture. Hence, if a correction is beginning now, a new short entry strategy is needed. Maybe look for stocks that have been in a consolidating/holding pattern that could break down rather than up? That is, look for tight bollingers such as those on CTX for example.
I noted that iron ore's good price run is continuing, up another 1.3% this morning. In addition, copper's price recovery continues. Hence, can the likes of FMG, MGX, AGO, OZL, and SFR fight the dip in global markets? Maybe, maybe not, hence, hold but with tight stops.
Where to look for new shorts, maybe banks, maybe retail, then if the correction gains traction swing into minerals.
