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  • Psyching Up To Buy At Maximum Pessimism Levels [View article]
    On Sept 24th Larry wrote:

    "stocks are currently inexpensive going by historical norms."

    The Nasdaq 100 (NDX) closed just a bit over 1661 that day. On Sept 25th and 26th NDX closed higher at 1687 and 1672. Every day since then NDX has closed lower than it was on the 24th. It closed today (10/9) at 1275, down over 23% in just 12 trading days. Guess those stocks are a little more inexpensive now, eh?

    Now Larry says: "Buy" after 8 consecutive down days in NDX (if you have some cash).

    If you bought his 'inexpensive' recommendation two weeks ago, you'd have 23% less in your account today.

    Maybe you might want to see the market at least hold a trading range for a while before you throw caution to the wind and try to catch the falling knife.

    If you keep saying "Buy" every week the market goes down, eventually you'll be 'right' and get in within a week of the bottom. How much cash you have at that point is anybody's guess.

    Most of the outstanding traders usually say to buy on the way up AFTER the bottom is in, not try to guess when it will happen and get there first. Have patience.

    Caveat Emptor
    Oct 09 19:46 pm |Rating: 0 0
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