Buying the dip...

viruscore1 · Feb 5, 2018

time to sell otm put and buy otm calls on favorit stocks ?

murray t turtle · Feb 5, 2018

Ayn Rand said:
I bought the dip.

Why? Nothing fundamentally different in the market. Only change was small change in interest rates.

The Trump tax cut is Big. It may lead to much higher deficits in the future but not now.

I started another thread asking for data support but best I could tell decline was orderly with no abnormal volume trades. Someone/s big was selling but no one is sure who. On the other side someone big was buying. Me.

At the heart of is that almost everyone involved with big volume benefits from higher stock prices. Everyone is getting a % of a big number. Plenty for everyone.

Only thing that would really tank the market is an exogenous shock.

I am calling for at least a +200 on the Dow on Monday.

Monday will be fun.

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Exactly, buy on tech stock dips. As far as buy DIA, on dips go for it , even though DIA is weakestt of 3, DIA, SPY, QQQ. Is tues turn around for DIA, dont know; i dont really watch DIA like SPY or QQQ

viruscore1 · Feb 5, 2018

When do we all determine we have enough stuff? Let's stop buying stuff we don't need, save our money for a rainy day. I wonder what would happen to china then. We should also blame corp america for our/west demise. They are manufacturing wherever is cheapest, forget the people, while lining their pockets.

vanzandt · Feb 5, 2018

vanzandt said:
Wanna see a real head scratcher....?
PG is at 52 week low.
Thats not how its supposed to work. It should be up.
That could be a bad sign.

Turns out it was.

ET180 · Feb 5, 2018

lylec305 said:
When do we all determine we have enough stuff? Let's stop buying stuff we don't need, save our money for a rainy day. I wonder what would happen to china then. We should also blame corp america for our/west demise. They are manufacturing wherever is cheapest, forget the people, while lining their pockets.

As a short answer: instant gratification. People think short term because one day we'll all be dead anyway and it takes discipline and will power to hold back on unnecessary purchases in exchange for a greater return on investments later. That cultural change won't happen until after the next great depression.

Gasparov · Feb 6, 2018

Visaria said:
It will be lower on Monday, then rally a bit and then consolidate for the next few weeks. Record highs in a couple of months.

I'm guessing you know how to read a chart

murray t turtle · Feb 9, 2018

Gasparov said:
I'm guessing you know how to read a chart

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Your guess could be as good as mine,LOL. QQQ could easily make new highs this year;but 10-25%CORRECTions can/could happen more than in 2017. DIA ran up so far + fast in JAN; it could /can turn into a bear market. Even if they kick downTrending GE out of that index [ DIA],NOT a prediction.
NED Davis...... internet ad just noted 10% corrections happens about once a year.

viruscore1 · Feb 13, 2018

I'm legging in, selling otm puts on my favs. If i get assigned, it'll be beyond 52 week lows...

viruscore1 · Feb 23, 2018

In a few months from now, we'll check the 52 week trading range and wonder who's the lucky sob that bought at 52 week low. Just saying ...

ironchef · Feb 23, 2018

murray t turtle said:
%%
Your guess could be as good as mine,LOL. QQQ could easily make new highs this year;but 10-25%CORRECTions can/could happen more than in 2017. DIA ran up so far + fast in JAN; it could /can turn into a bear market. Even if they kick downTrending GE out of that index [ DIA],NOT a prediction.
NED Davis...... internet ad just noted 10% corrections happens about once a year.

Since we already have our ration of 10% correction this year, will it be smooth sailing the rest of the year Mr. Turtle?