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The Globe and Mail

Look for a market correction in September

FRANK GUNN/THE CANADIAN PRESS

Globe editors have posted this research report with permission of  Phases & Cycles Inc. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following text is excerpted from the report:

The prospects are good that the summer rally will persist, with minor sell-offs, for at least a few more weeks. But we still expect that it will run out of steam and that the downside of the 105-day cycle will drag the markets back to or below the June 24th lows as the cycle matures in October.

The bull market's 20-month advance from late-2011 needs a more extensive correction than the small May-June sell-off in order to remain healthy. This should happen after Labour Day.

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There are still gains to be had from technically strong stocks as the summer rally proceeds. However, appropriate stops based on investors' risk tolerance should be placed to protect profits as autumn approaches. A new buying opportunity in this bull market should appear in October.

Read the full report here.

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About the Author
President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More

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