Stocks 5% from 52 week low. https://www.marketwatch.com/story/b...are-within-5-of-their-52-week-lows-2018-11-01
This reminded me of all the wrong things I did decades ago. I learnt my lesson and I have not bottom fish for years. humans are humans. and humans will continue to bottom fish.
There could be another shoe to drop. A decade ago it was banks, subprime loans and housing bubble. This time is different. Certain stocks may bounce 10% or better. Averaging down buy additional stock is costly. If the market continues on its current path downward, buy call option will limit losses to call purchase. While staying in the game for upside.
I like checking Transportation Index to gauge direction, if it not being hauled, products not being sold. Recent lows finally broken to run the stops and seeing higher volume on these lows, I read it market going higher.
Dr. Copper! I follow the Copper futures too -- where so much gets made. So, variably, Copper goes up and suggests things getting made (or, orders being taken), but later, Trans yells out, "It's left the loading dock!" with more certainty (if less lead time).... But, re: "Bottom Fishing" -- there are some fun names in there -- and *fishing* implies that there is some discretion and judgment and discernment of future value (or, current UNDER-value) going on. And all of that is always a good thing. But as far as coming sources of socioeconomic instability, we have an aging Baby-Boomer cohort lending a top-heavy nature to the population profile; we have a health system top-heavy with admin/debt collection costs; we have a university system top-heavy with admin/debt collection costs. And this doesn't get *near* the borrow-from-the-future nature of U.S. federal budgets. It's coming, and it won't be pretty. It will certainly equal The Great Recession, and because there is so much less in home equity to evaporate, it could easily be worse. Sorry, but as an economist -- and one who looks at S&P500 earnings and sees a market that should be sitting at 2350 or so.... I remain (market) bullish short-term, and (market) bearish long-term. 10% growth in earnings (the economy) will get us 10% *below* our market today.
%% Weekly charts on QQQ, SPY......have better buy volume, this week. I'm still bullish on small cap ETFs; but if SPY cant close above @275area [200 day moving average ]=that's a bear move/bear market.1973 or 1974 NOV was up about 16%/+[ SPY or QQQ]...…………………………..OCT was a good down move for small caps, so could be more risky/rewarding for Bulls??