Should we look for leaders that hold up well during a correction?

Definitely. Even if this is only day one of the correction, and you prefer to sit out rather than short, look for relative strength and potential leaders emerging from the pullback. QCOM in 1998 started its rally relatively late during the first leg of the move, then led from February 1999 and rose 2,000%. We may not get another move like that, but I agree that we should look for new leaders during every pullback or correction. MRVL was a good example: it held up very well while the indexes were below their EMAs and moving lower, then became one of the biggest movers in the rally. Compare individual-stock price action with the indexes.

Source: Holiday time | 5 Jun 2026