Friday, February 28, 2014

Not Letting In Dip Buyers

This stock market is amazing.  The strongest stock market I have ever seen, on a risk adjusted basis.  That includes the 1996 to 2000 period where the market went parabolic.  Back then, the VIX was regularly in the 20s, even in an uptrend, and there were quite a few sharp swift pullbacks.

Since we bottomed 3 weeks ago, the market has really only had one down day, and that was less than 1%.  It has not let in the dip buyers, only those buying on strength and ignoring the naysayers have made money.  Those shorting got to pay another tuition fee.  I am disappointed that I couldn't get in yesterday, because I could feel the bullishness, I was just trying to be too perfect with long entries.  Forgetting that this is the most forgiving environment for US stock investors that they will ever see.

Eventually the crowd will get on board, reach saturation, and then we'll pullback.  But that feels like an April problem, not a March problem.  Before then, I may have to hold my nose and buy this thing at these levels, to pick up small gains, in a financial market lacking good opportunities right now.

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