In our latest Stay in Step webinar, Irusha and Scott addressed the latest volatility in the market, and held an extended Q&A session. Since the market recently shifted into a correction, much of the content had to do with the market’s selloff and talk of an upcoming bear market.

“It is not entirely clear what causes deep market corrections, but without them many of the best performing long-term investors would have never achieved their spectacular returns.” – Peter Lynch

In a correction, fear replaces greed amongst investors. This overlying sentiment makes it easy to get trapped in a negative mindset and tune out from the market completely.

In our shop, corrections become a time to focus on our chart reading and screening. The important question we are trying to answer is simple: What stocks are fighting this trend? We want to follow the stocks that are fighting the downtrend because these stocks are typically the ones that are first out of the gate once the market recovers.

One of our favorite indicators to find a stock resisting the downtrend is the relative strength line, which identifies stocks that are outperforming the S&P 500. You can enter “RS Line New High” as screenable criteria, or use preset reports and screens that focus on RS Line strength, such as the Growth 250.

If you need any help in setting up a screen or have any questions, you can reach us at 800-424-9033 or at


Best Returns,


The MarketSmith Team