Thursday, April 5, 2012
Buy This Dip
Getting long this dip, expecting more upside after the long Easter weekend. If you don't have bad news, you don't get a buyable pullback. Europeans are scarecrows, they get scared easily, and are dumping their stocks wholesale ahead of the Easter weekend. Remember, they have Friday and Monday off. They want to lighten up on risk, even at firesale prices, ahead of the long weekend. Spain has spooked them. We are getting the bad news (Fed minutes/no QE3, Spanish bond weakness) and you have to buy the dip. It works till it doesn't. I am betting that it works for a while longer because of the strength of the uptrend. It is like late 2009, this strength. 2009 shook the tree and took out weak investors. 2011 did the same thing. You had to buy pullbacks in November/December 2009. If you were early, you could just ride it out because it went higher eventually. Same thing here.
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11 comments:
Sell the Dip, Buy the Dip consensus. Central banks pause in flow of juice not just a news event to trade, it is the sell signal, worked a charm everytime in Japan for 20yrs.
You have reached the practical limits of QE, ugly inflation and real wage compression, direct asset purchases next step, i.e. Japan like again. Agree not as aggressive but foolish to think a lack of aggression was the problem, pushing on a string was.
Exactly do not compare US with japan. Compare it to Israel
Both stolen lands by people who came over on a boat
Also demographics matter squat for stocks in Japan, in 1989 4% of goods made abroad, today over 20% and growing, you can have the mexicans come to you or you can got to them, Japan went to Thailand, China, US etc, it also isn't called slavery if you go to them
You are assuming Japanese stocks don't depend at all on domestic economy. That is absurd, showing your lack of analysis. Japan was the 2nd biggest economy and the biggest market for most of their public companies. To says that matters squat shows your ignorance.
How about you buy the dip and I will keep selling it and we see who called it right or wrong 12 months from now.
Jesus Christ ... each time a QE was stopped the markets crashed. Dudes open ur eyes ... it's selling time again and most likely markets will drop as low as last time. Then Benny will announce a new QE ... eze money on the back of the US taxpayers ... :-)
So many scarecrows out there, expecting crashes and thinking Banana Ben is hawkish. LOL. QEs will not go away until S&P is at new all time highs or until Bennie Boy resigns. How many times you gonna let Bennie Boy bluff you out of a pot? Yes, we can have a big correction, but not yet. Until then, shorts will keep bleeding. Stop being such an eager beaver.
Hehe ... ES dropped 15 pts - scarecrows making big $.
Glad to see it drop, going to go long on Monday for a high probability trade. Good luck with your short!
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