Originally Posted by
MrBowl
I'm still 100% S and I really don't want to waste an IFT on selling for a loss. Most of the time patience wins out and dips like this are quickly forgotten. I've fallen further and further back in times when I jumped to safety and watched stocks rise and I only want to exit with a clear topping signal.
I continue to hold on to the belief that during a QE dips/corrections are held to 3-5%, and this idea may be tested soon. However, that applies to the S&P 500 not the W4500, so I will likely have to stomach a bigger dip in the S funda and I'll be loading up on Tums, I suspect.
I still think that although market internals are currently ugly we are not seeing the market bubble pop and there is no oncoming credit crisis right now, so for the past 3-4 weeks we've been zig-zagging as "weak hands" finally reach their "I'm selling when the market hits..." -level, followed by dip buyers pushing the market to slightly higher highs. Will we run out of weak hands or dip buyers first?
I think the late day plunge under 1550 was due to the N Korea situation, as that confused country tries to make an island out of S Korea. News events such as this are always brief and quickly forgotten. So what I see otherwise is a fairly tight range of 1550-1573 for 3-4 weeks with gradually ascending highs and lows.
So at this point I plan to stay in. It could be that I'm completely wrong and in a couple of weeks I'll be writing from the bottom of the Tracker. Time will tell.
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