Thursday, January 31, 2013

Buy the Small Dips

You will not get big dips.  Right now, we are very close to a buying point after yesterday's selloff.  If we can get a little more dip down to 1490, that is a buying opportunity.  Then hang on and ride it to 1525.  The GDP number doesn't matter, that is history.  The nonfarm payrolls might come in a bit light and that will be your chance to buy if we don't go down today. 

It surprises me how investors can like FB and hate AMZN.  They are both thinking long term, except one has a strong long term vision (Bezos), while one has a horrible platform for making money (Zuckerberg).  A long AMZN, short FB pair will make tons of money over the next 2 years. 


Ilya said...

You need to carefully read their recent report. Their model is just about played out, their electronic sales are declining, they are having to collect taxes.

ilya said...

Just to be clear FB is a total piece of garbage that will ultimately be worth 0. AMZN is way overpriced and the expectations are unreasonable, but it is a real business, we buy from them all the time.

Market Owl said...

AMZN is overvalued but if you are going to hedge in the internet space, it is the best long hedge against a short FB position.

AMZN will eventually be like Walmart of the internet in a few years. The economies of scale are being underestimated and no one will be able to touch them online. They are the king and high barriers to entry, much higher than a social website running ads.