the gains should have held, we are way oversold. If this was a normal market the gains would have held and advanced. The reason I'm on the sidelines is this isn't a NORMAL market. this market is moving on pure emotion. oil is moving on pure emotion now. bubbles are very hard to trade and very hard to make money in because you never know from day to day or hour to hour what emotion the herd is going to have.
Think of bubble as a stampede. You wouldn't jump into a stampede, you wouldn't get in front of it either. The best thing to do during a stampede is stay away and then when it is over come and pick up the pieces.
i don't trust the dip to buy in on. With oil moving the market what happens if you wake up tommorrow and Iran is bombed? oil shoots to $200 and the market tanks. No will sell the rallies not buy the dips. safer that way.
Well of course you sell on the rally - after you buy on the dip.
I'm not selling out of my ultra-short funds entirely. Keeping a very small amount of QID and SMN, which I have at very low cost basis. I'll add to these as the market rallies.
yeah I don't think I have ever saw a market like this. Bad news out for months if not years, no reason to buy, no particular reason to sell. no fear out there. People just waiting on the sidelines for the "event" most of the smart money is already out looking to buy back in. I think when those 2nd qrt statements hits households of 401k's and irs's there might be a big flush.