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If You Think We Are In A Bear Market…..

March 30, 2008 6:53 AM

If you believe that we are in a bear market (there is nothing yet to suggest we aren’t), then to make above average returns will require more of a trader mentality - do what they do. This means “buy the dips and sell the rips”. Basically this means enter at certain price points, take the 5% or 10% profit and exit  - and wait for the next one.

 This is what I believe the traders have been doing to the market for past few months. There is no confidence in sustained moves higher as evidenced by the lack of volume after rallies fade… That is why I consistently said last week….wait, wait, wait.

 Look for our SB Numbers (or your own) and look to take profit early and often. If you had taken all the SB numbers thus far in March, both long and short, you would be up somewhere between 20% to 30% for the month. Not a bad return and certainly better than the Cramerica’s “buy and hope” followers. CHK alone was about 10% in a week on the long side in a bear week….

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One Response to “If You Think We Are In A Bear Market…..”

  1. Bear Market Plunge: StockBlade Timeline Of Views For 2008 | on October 28th, 2008 12:14 am

    […] 30th: “If You Think We Are In A Bear Market”. I made the case in this article to “sell the rips” because I believed any rally would […]

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