We get a 2 year bear market and everyone thinks the market has to go to 0 now. This group of elite traders is going to get taken completely by surprise when the overall trend resumes up and we get new highs on the dow and the nasdaq composite. Why is everyone so bearish on a little retracement on the greatest bull market ever? Shares are cheap now, and they can only go up from here. As I said on another thread, I'm a buy and hold investor. On Friday, I went long based on a a broker friend of mine who is telling all his clients to buy now and hold for the bull market to resume. All I can say is that buying here represents a huge reward with almost no risk. You don't actually expect everything to go to zero now do you? If so, that is childish. The smart money buys when shares are cheap, and sells into strength. Smart money didn't buy during 2000, they bought in the crash of 87. And we are buying again now.
my broker friend says we start going up this week, so I guess I put my stop loss on stocks just below last weeks lows.
this is correct. so - why should any smart man buy NOW? shares are still heavily overvalued. economy shows no real signs of strength.
gerry, i buy because broker friend says buy. He says smart money is buying and shares are cheap, thats good enuf for me. sides, ENE is cheap
I think I will wait till next week when I can buy them cheaper. .OR next month, when I can buy them even cheaper. . OR next quarter, when I can buy them even cheaper than that . . OR etc., etc. At least as far as I can tell- the trend still seems down to me.
I would be careful not to listen to salesmen...I mean brokers. Unless he told you to get out(or short) near the top.