Apple lovers, stop emailing me, here’s my latest take on popularity contest, uh, I mean stock.
Awoke today rooting for some panic, but just seeing buyers everywhere. Pass. Yes, I’m basically a scalper, but since I take huge positions relative to my capital, I want to scalp only when prices are at an extreme. The problem with buying into today’s market is that there’s no panic. Sure, we had decent sized down days both yesterday and today—if you think Dow -130 is big—(I don’t), but, no matter the grim economic/housing/evil empire destined to fall apart due to its own sins reality (not that I’m biased or anything), there’s always been dip buyers who think that buying into a 20% down market is a value (no matter that despite all the buying, we remain under the key 12k support on the Dow). Maybe I’m overly cynical, but maybe not—after all, I just want panic so I can buy stuff like CNQR and LULU at $20, MELI at $35, MOS at $60—those would be panic prices I’d feel extremely comfortable buying into (it takes a lot to make me ever want to buy).
But when people are already talking bottom even as the markets can’t go green and you’ve got crap like SCON, COIN and MXFD (which is setting up a nice big Supernova—meaning don’t short until the first down day, but when that happens, it’s gonna crack big) up big today.
I just don’t see it. In true bear markets, nobody pays any attention to that speculative crap, they’re too busy losing money on their “investments”. Right now not enough people are losing money/giving into the thinking “I’ll never put my money in the stock market again” LOL. Not trying to be mean—well maybe—but you need that dumb money to sell out and really panic to get the best prices.
Sure, maybe if we were to finish the day and go positive, that’d be huge and I’d probably buy something for a gap up tomorrow, but if I’m going to buy the dip, which I usually never due as it’s not as predictable as buying breakouts, I want a big ass dip. To do that, all other dip buyers must already be in. I think many already are, but with all these stocks, they have serious resistance just above their current levels, meaning it’s basically a brick wall. That’s why I need 10-20% more downside before I buy, to make the risk-reward worthwhile.
So, I’ve been traveling (Sundance stories and pics to follow this weekend) between all the crap I’ve got going on, my research has suffered. Other than MXFD, anybody got any crazy charts for me?
Posted in AOL