This one slays me. All the talking heads say buy the ****ing dip. When do they tell you to take some profits???
Authored by Sven Henrich via NorthmanTrader.com,
“Buy every dip” they told you all summer. Bull after bull came out and told people to buy the dip. That worked well, no really, it worked. The move to new highs looked impressive. In the headlines. And in some indices and in some stocks that is. It didn’t work in many others. At all. In fact many indices have been an absolute horror show technically and never made new highs and/or they kept dripping to new lows.
To compound the problem the same people that told you buy buy buy never told you to sell. Don’t sell new highs was the mantra. The rally is expanding. No seriously, that was the PR circus running even in early October. Most bullish period of the year is just beginning remember?
Ignored were the negative divergences, the weakness underneath, the narrowness of participation (see also: Lying Highs). All of it.
And now the “hope” is for positive seasonality into year end, buybacks coming back, etc. Which may well happen of course.
After all we are very oversold here and a rally will emerge somewhere from these conditions.
But there is a lack of accountability as to the underlying damage that is being caused here. And while there are still key individual winners in 2018 the underlying picture remains absolute horrific.
I’ve picked a few select indices and sectors that highlight the current state of affairs. Buy every dip without selling.
How did that work out for the larger investing public and hedge funds for that matter?
Banking Index $BKX:
http://www.zerohedge.com/news/2018-10-24/buy-fkin-dip-they-said-no-brainer-they-said?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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