Buy The F&ing Dip Even If It Is 10 Minutes Long!!
Stocks are no longer allowed to drop. This is a problem as many investors are required to hedge portfolios. As such, they are not enjoying the recent run since the last period of weakness that ended in early March.
Tracking up and down moves is a great way to be more adept. The S&P 500 began an up move that started on October 30th and ran to January 25th (87 days) the gain was 17.90%. Then a pullback took place from January 25th to 29th (4 days) that saw the S&P 500 fall -3.99%. Next the S&P 500 rose 5.94% from January 29th to February 12th (14 days). The last down move saw the S&P 500 fall -4.23% from February 12th to March 4th. (20 days) The current up move began on March 4th close and is up 8.80% through 2:30 p.m. EDT. (36 days)
The point here is dips are to be bought until further notice as the Federal Reserve has thrown so much money at the pandemic that TARP money is now considered chump change. The economy is beginning to improve as 916,000 jobs were created last Friday and we might see numbers like last Friday over the next few months. Why?
Pilots are being recalled. Waiters and waitresses are going back to work. Southwest Airlines (LUV) this morning just called back 2,700 flight attendents. The supply chain is getting more food to restaurants because you have to feed the pilots and flight attendents. Packaging companies are seeing increase demand again. The trickle down of an economy opening back up is in play. Remember that this is not just one country opening back up it is the largest and most powerful economy in the world reopening.
Until otherwise told by us, the only trade is "buy the f#$%ing dip."