Buying the dip has turned into a religion. It has many followers, and they throw their money at the first sign of weakness in the overall market.
Are they right to do so?
I have seen it several times in the last few weeks ... and maybe I have been focusing on the intraday dip buyers, but there have been strong buyers of the dip and each time it has not really worked out.
Maybe you are waiting for a more substantial dip. The S&P shot higher on 12/31 and 1/2 but if you missed that move are you trying to time a bigger move?
2013 is not likely to follow the same path as 2012, so buying the dip in this market may not lead to the same returns. That said are you buying this dip?
Let us know!
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