I can recall most of the last dips, especially the nasty one we had in June/July. If there is a dip of 7% or 9% I will certainly be buying it, I have seen in the past too many times a dip that was hard to go long on, turn into just the GREATEST buying opportunities.
As long as fundamentals, psychology and macroeconomic conditions are favorable, I agree. You wouldn't want to dip buy amidst deteriorating fundamentals, though.
Thats the thing though, rewind back to June and July of 2006, I was going long nearly every sector ETF and every single time I did I was nearly selling for a loss due to the constant sell offs. It was like a never ending drop. Everyone thought at that time that there were deteriorating fundamentals with high inflation, gas above 3 bucks a gallon and 70+ a barrel. On top of that recession talks and a housing collapse. By mid July everyone forgot about that and of course by the end of 2006 most markets were sitting on double digit gains for the year.
If there is a sell off (looking for 5-7%) then scale back to the weeekly chart and wait until you see a volume spike followed by a snap back from the lows in the CCI. Then it is a good bet that the dip can be bought. To say that bottoms were easier to call than tops would be a huge understatement.
That's true. Psychology was negative, and people were freaked about gas prices and inflation. I think employment and real wage growth is the ultimate benchmark. If that foundation remains healthy, other aspects can be minimized.