It’s still speculative at this point, but evidence is growing that U.S. stocks may have entered a bear market. If so, it will have begun with the powerful impulse leg from early May’s highs. This occurred not only in the broad averages, but in such key bellwethers as Apple and IBM. As the bear develops, our trading strategy will need to evolve to exploit the violent rallies and unexpected dives that lie ahead. In this lesson, we consider some specific strategies that are applicable now, as well as others that will likely come into play over time.
