Market themes are becoming more clearer and the asset allocation and rebalancing games continue. The most important thing to watch is sentiment shifts. If the sentiments shifts rapidly then we will have good bounce. If dip buyers keep stepping in and proclaiming buy at every stage, the market most probably will deal a knockout punch to them first before it goes up.
Watch the perma bears and medias favorite bears. If they start dancing on the street and start proclaiming I told you so or start peddling in rumour, be on the watch. I already see one of them actively peddling some rumours. If the Cramer equivalent of bearish scenario peddlers have new teeth job and botox job and start flashing their teeth on CNBC, you can buy the market.
Beginning of year was too uniformly bullish, if that consensus fades and bearish meme takes hold I will be a buyer, You need 3-4 negative days to suck out the bullish oxygen. Then the market will have lot of things lined up and offer a good window of opportunity for bullish plunge.
When the hope fades, a speculator has an edge.
5 comments:
Buying the dips in such a market and only taking break-evens as soon as you are not proven correct is the best way to catch the next big move up. All you lose is commission. Additionally, I have scalped up and down to make up for those commissions.
I agree on Nasdaq and small caps leading the charge now. Look at IWM. MDY and SPY weakening. Sector rotation? It's about time. SMH should see some too. Been ignored for too long.
sorry IWM not leading, bad data feed
IWM not only not leading but broke trendline too...
Not that anybody cares, but one of my few "calls" was to buy GG puts-27.50 and 25. I said this about 10 days ago. Looking good.
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