Where are the dip buyers | stockbee


Where are the dip buyers

This is the kind of oxygen sucking action you want to see. Attempts at dip buying are quickly snubbed by programs and borgs which just keep pressing sell orders. Collars are in effect in market, so probably more selling will happen.

Context is important, we are witnessing a correction after many months of rallies, so there is no need to run and buy it. The objective should be to protect profit earned during the bull move.

Now this is the action which will lead to meaningful bottom in few weeks . What you should do is take your 10 to 25% profits on shorts while the selling continues, abandon shorts which have not worked and start preparing for next phase. Keep cash and buy list ready.


F. said...

I agree it was a bad combo: surprisingly bad housing numbers, program traders started hitting bids this morning in the larger cap stocks (they were buying most of the day yesterday), and some speculative money buying the dip is now in the red.

Several other blogs saying they were buyers this morning may have been a clue to further downside risks in the very near term.

threadogg said...

f. i won't be starting any watchlists till I get the signal from the smart little guys, the traders are buying like tickets on the S.S. Titanic headed for an Iceberg called Black Monday. Good time to take that summer vacation.