Buy this dip, or get the hell out?

[skc]

Indeed.

For what it's worth, stocks on my watchlist as potential buys have really just gone sideways, and barely dipped at all.

I don't see anything that has changed in the stocks that were trending well. The trend is still in tact for these. They're actually setting up nicely if we get a move higher.

Indeed a very two-speed market at the moment. Non-mining is holding up quite well - even the cyclicals like retail and building materials.

Small punters are probably hurting a bit more if they have larger exposures on the specie end.

The fall is only ~250 pts on the XJO and that's not a lot after a run of some 1150 pts since July. Certainly still in "dip" territory. So be alert but not alarmed (yet).

 

[sinner]

Indeed a very two-speed market at the moment. Non-mining is holding up quite well - even the cyclicals like retail and building materials.

Small punters are probably hurting a bit more if they have larger exposures on the specie end.

The fall is only ~250 pts on the XJO and that's not a lot after a run of some 1150 pts since July. Certainly still in "dip" territory. So be alert but not alarmed (yet).

A low correlation market is a healthy market, generally implies investors in aggregate are concentrating on single name and idiosyncratic fundamentals rather than systematic fundamentals.

 

[skc]

A low correlation market is a healthy market, generally implies investors in aggregate are concentrating on single name and idiosyncratic fundamentals rather than systematic fundamentals.

Yes and no... there's very high correlation within the two speed market (from my observation). I think the systematic fundamentals are driving the two sectors apart.

P.S. Man, you use some big words. Idiosyncratic!

 

[nysefloortrader]

Indeed a very two-speed market at the moment. Non-mining is holding up quite well - even the cyclicals like retail and building materials.

Small punters are probably hurting a bit more if they have larger exposures on the specie end.

The fall is only ~250 pts on the XJO and that's not a lot after a run of some 1150 pts since July. Certainly still in "dip" territory. So be alert but not alarmed (yet).

I agree to be alert, but that alert could turn to full alert and then panic. I think the market are overdue for a massive dip, just stand back a minute and look at them. Things are way to overdone, for this little dip to mean it is all finished and the bulls to come back. I do not want to own this market at the moment that is for sure.

Think the bears are growling here and have had their first feed......but the alarming thing is they are going to come back soon for seconds.

Just want I think.

 

[Tyler Durden]

The "sell in May and go away" saying could not have any better timing.

 

[Muschu]

The "sell in May and go away" saying could not have any better timing.

Is this sector-aligned however? Look at the recent contrast / performance between (for example) resource and telco stocks.

Do you plan to sell "all" and "go away" at this point in time.... Or wait a while as I plan to do and go stock by stock?

I prefer to watch and assess rather than assume the past will repeat itself. It may. It may not.

 

[So_Cynical]

Big opportunity coming up in the miners and gold...the 2 resource focused ETF's are looking good, why take on individual stock risk when the index is now just as easy to buy.

 

[AlterEgo]

The "sell in May and go away" saying could not have any better timing.

But it's not May yet! Should've sold in March.

 

[tinhat]

Big opportunity coming up in the miners and gold...the 2 resource focused ETF's are looking good, why take on individual stock risk when the index is now just as easy to buy.

That's not a bad suggestion which I hadn't really considered (never bought an ETF). For miners/resources I assume they are RSR and MAM? With gold being GOLD?

 

[qldfrog]

GOLD or PMGOLD (perth mint) can be used indeed as ETFs.
hope it helps

 

[Tyler Durden]

Do you plan to sell "all" and "go away" at this point in time.... Or wait a while as I plan to do and go stock by stock?

I actually plan to buy

 

[So_Cynical]

That's not a bad suggestion which I hadn't really considered (never bought an ETF). For miners/resources I assume they are RSR and MAM? With gold being GOLD?

Yep RSR and MAM, both have Gold exposure anyway.

 

[chops_a_must]

It might be worth people doing a little bit of a thought experiment.

Keeping in mind some things...

We have seen some big market heavyweights collapse, and where has the market gone?

What has been going up?

Are those heavyweights going to continue to collapse?

And if they don't, or if they are, what is going to move the market?

Are the high yielding stocks going to retrace, or are they going to keep going, or go sideways?

What is the market going to do based on the likely moves in the near term?

 

[Out Too Soon]

I've noticed since "Sell in May, go away" became well known the May "dip" has drifted back to end of March (the herd trying to beat the rush), maybe May isn't so bad anymore or maybe time & stats will beat it back into submission. Still "Sell in May, go away" should be in the back of the mind of every rookie

(No lectures please, they're boring & will be ignored anyway : )

 

[MrBurns]

David Koche thinks we are over the top and overdue for a large correction.
US mainly I think but we would follow as usual.

 

[VSntchr]

David Koche thinks we are over the top and overdue for a large correction.
US mainly I think but we would follow as usual.

BUY BUY BUY

 

[pavilion103]

Setups are appearing for me. I'm trading them and making money. This has been a great month or so.

I'm not guessing when I'm going to get out. I'll keep trailing the stops and let the market tell me when it's time to get out.

 

[Tyler Durden]

I've noticed since "Sell in May, go away" became well known the May "dip" has drifted back to end of March (the herd trying to beat the rush), maybe May isn't so bad anymore or maybe time & stats will beat it back into submission. Still "Sell in May, go away" should be in the back of the mind of every rookie

(No lectures please, they're boring & will be ignored anyway : )

Maybe only this year. I'm still looking forward to next May...or any dip actually.