Lots of funds don't even try to "buy the dips". They just buy what they like on fundamentals (through some kind of strategy which they advertise with) and they're certainly not going to be swinging between emotional extremes. It's not their money anyway and as long as they stick to the strategy they get the moolah. Very simple. And if the strategy fails, they'll just start another fund
Yeah, I find that really funny. If all you had done over the last 80 years is put money into the market after every down quarter, you would have outperformed every equity fund by miles. Yet try advertising that strategy for your fund and see how many investors you get. Nope, you need to have brilliant, highly paid analysts who "understand" value and worldwide trends and have the Ivy League degrees to prove it!
Price tells you just about everything you need to know. Not what you want to know. Need to know. Institutions account for roughly 70% of trading volume. Where is their present mindset??? The threshold for the number of new 52 week lows as a reinforcement is 40 to 50. Today, twas 96. NYSE not NASDAQ. Naz was 153. Short term is over-sold and the 4th of July generally gets a rally. Before or after. Hmmm, might coincide with the demise of QE-2. Coincidental is a derivative of coincide. Translation, sucker rally. Yes, you can make money in a sucker rally. Me? I'm net short.