Buy The First Real Dip

I am not numb to the feeling that most have trading this market. It seems bullet proof. But I do not trade and invest based on my feelings. Given how long this rally has lasted without a correction and the level of complacency, the risk/reward is poor. I believe the best case scenario is that we grind out a few more percent only to see it taken away when we finally do get a correction.

The first real dip (more than 3%) will likely be bought by those who are lagging this rally and bulls who sold out their positions. It will only be on that next rally where the bears will have  a chance at a better top.  I remain hopeful that we will finally see a correction and plan to be a buyer of that dip if it ever occurs.

1 comment:

daltonvanden said...

The correction will be in the 1st Quarter of 2013. I cannot share my proprietary tools here but just giving  a hint, listen to Douglas Kass. He and his son are priceless' remnants of the pre - Sarbox era.