Buying dips is probably the single best strategy in the stock market. Great in bull markets, good in lateral markets, ok-ish in bear markets. The problem is not buying the dip, the problem is believing there is zero risk, that you don't need a stop, that you can average down losers, etc. and that somehow, the Fed, the PPT or the Holy Virgin will save your bacon.
S&P does look oversold. We could well have a bounce sometime next week. How high it goes is anyones guess.
This is why I love this type of thread. We see a pattern and discuss it. Show conviction...Then, as the pattern or the trend or the situation changes, we discuss it. Show changes in conviction. As the risk free S&P 500 rolls along, its takes a huge amount of bad news to change the major trend. I keep thinking..this time is different..this time the market must become rational. But it never does become rational until its too late.
I'm not sure but the share of capital gains taxes is quite significant in US given USA is practically bankrupt country not losing such an important revenue source is exactly why believing in the fed is rational nominally we're more or less safe, real purchasing power of that money is a different matter
So that entire fast drop was just a setup for this to easily rip back to new ATH. Those drops are always on borrowed time and it recovers so damn fast. We new the market was unstoppable, but it is just so epic how quickly and easily and goes right back up as if nothing happened not too long ago.
I don't know which was more confusing, rates falling Friday after the PCE or the Falcons taking Pennix at 8. And I guess Daboll gets another year trying to turn Jones into Josh Allen-lite.
CPI will not fall much since rents keep rising, so do insurance & used car prices. The pumpers at Morgan Stanley are living on hopium. How can rents drop when their equivalent housing costs for ownership keep rising? Here in the SF bay area whenever a property goes on sale there are 20 buyers ready to outbid each other. Good luck with your rents are in disinflation effluvium.