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IBDvalueinvestin (98.50)

Buy the dips whenever stocks fall on better than expected data



September 01, 2009 – Comments (9)

If stocks fall on worse than expected data then you double down short.

Today massive -160 djia fall is a perfect case when you cover ahead of the next day's data release.

Its also a time when you go long the stocks that are the cream of the crop. In other words stocks you know are great fundamentally but you wanted in lower.



9 Comments – Post Your Own

#1) On September 01, 2009 at 12:13 PM, IBDvalueinvestin (98.50) wrote:

Which stocks am I talking about? The high profile retailers


Why? Because the people that are the most well off at this point in the economy are the rich whose portfolio's have soared since March and they are the ones that will be shopping at GES, TIF, COH



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#2) On September 01, 2009 at 12:17 PM, russiangambit (28.70) wrote:

Never saw a rich person at Coach. At Saks, Tiffany, yes. At Coach, no. And what is GES, anyway?

May you should buy SKS instead.

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#3) On September 01, 2009 at 12:19 PM, jason2713 (< 20) wrote:

I tend to disagree with you on this.  Who knows how long this dip is goign to last, and where it takes us.  I think people are sick of the "better than expected" scenarios, it's either good or bad news, none of this BS grey area.  It's a big sales job man.

If you haven't already seen, the insider selling is at its peek going back a year.  Do you really think the people most intimately in touch with their company and can see closely the forecasts would sell if everything was so rosey?  I may be wrong, but that's how I'm taking that.

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#4) On September 01, 2009 at 12:35 PM, IBDvalueinvestin (98.50) wrote:

Russian Gambit , where do u shop Coach in Harlem or Detroit? That would explain it. Coach bags go for minimum $500 and higher

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#5) On September 01, 2009 at 12:40 PM, IBDvalueinvestin (98.50) wrote:

Nothing changed with today/s data for stocks to fall. They are only falling because the Calendar says Sept. 1st. I expect a rebound Wed. especially considering the magnitude of the selloff.

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#6) On September 01, 2009 at 1:11 PM, cbwang888 (25.51) wrote:

IBD, great calls on swine flue stocks. Help me make a bunch on SVA and NVAX call options.

However, who are selling after the news today? No more good news can lift  the market now because the fundamentals are still bad and can get worse. This market is overbought and junk stocks like AIG, FRE, FNM music stop, who is there standing? China style corrections may be coming to US starting now ...



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#7) On September 01, 2009 at 1:28 PM, IBDvalueinvestin (98.50) wrote:

There are still plenty of stocks that really have great fundamentals and with even better fundamentals going forward.

To name two : COH & BBD

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#8) On September 01, 2009 at 1:33 PM, DownEscalator (< 20) wrote:

Right...and for the longest time we had stocks rising on horrible economic news.

The optimism is slowly draining out and the bears are taking over.  If your "Sept. 1" argument were correct, it would have been instant this morning, but it wasn't - opening was at +40 DJI or so.  The sell-off was midday.

We'll bounce tomorrow, but it won't be full, maybe 0 - +.4% on the indexes or so.

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#9) On September 01, 2009 at 1:44 PM, IBDvalueinvestin (98.50) wrote:

BBD - Bradesco's Chief Executive Luiz Carlos Trabuco Cappi said he wouldn't be surprised if the bank's credit portfolio grew between 20 and 25 percent in 2010 as expansion in Brazil's economy quickens next year. (Reporting by Elzio Barreto and Aluisio Alves, editing by Gerald E. McCormick)

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