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The appalling complacency of dip-buyers over the past several weeks is finally starting to catch up with them, and condescending remarks are turning into conciliatory tones all around. I suppose I could link to at least a dozen posts that I have written over the past month or so urging extreme caution and patience, but I imagine at this point that I would just be preaching to the choir or to the newly converted.
Looking at an intraday chart of the SPY, you can see that selling volume has actually accelerated with each day of distribution that we have seen. If we are at “the” bottom of this correction, then you would like to see selling volume abate as price makes new lows. Thus, having an attitude of letting the market prove itself first before declaring the end of this pullback is likely to be the correct frame of mind.
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Thanks Chess. Preachin’ to the choir here.
Thanks Chess, flat today all cash! I made money by not losing if you know what I mean!!
buying the dip has still been working just fine. you just need to know what you are doing.. all of these v shaped closes have become so predictable it feels like stealing… today’s close will be /es 1260.50 …
Rookie
Chess. just to let you know, your daily wrap ups triggered me to go to all cash 2 weeks ago or so in my retirement funds. As you were depicting the initial “breakdown”, it felt “hinky” to me after reading and watching your vids. Fuckin A, thanx.
Good man. Plenty of cash to build some awesome houses down there for you.
Funny thing. I went to cash at 1220 (OK…I bet against QEII and lost) , started shorting at 1300-1340 and now started nibbling on some longs and PMs.
Gods honest truth. Cash is probably best here but a relief rally is a comin…soon as they avert a meltdown in Japan. Till then looking at 1225 which makes no sense cause that’s where I went to cash but these “investors” apparently think 6.5% is a fair value return…that or their earnings estimates are out of control. What’s a guy to do?
Good luck all…
Played a few small positions over the past couple weeks, but all cash now. What a mess. Did the Yen break 80 after all that intervention? Geez.
The charts are lining up for a flash crash. I was coming home from a Board meeting on the Thursday of the last one. Tomorrow is Thursday, but no meeting…………..AAPL at 200 anyone?