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发表于 2010-10-29 02:01 PM
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(ZT)
Investors still buying dips along with POMO
If you are an avid reader of the "Stock Trader's Almanac" you are likely aware of the fact that we have officially entered what is known as the "Best Six Months" of the year. You might also know that historical stats suggest the best time to be long stocks within the presidency cycle is the first quarter of the midterm year and the first quarter of the pre-election year. In addition, history suggests the markets have out-performed when there is a Democrat in the White House and a Republican controlled Congress.
What does all of this mean? Investors maintaining a buy on dips mentality will likely face better odds of success than one that is fighting the statistics in the coming months.
With all this in mind, chasing markets higher can be (more often than not) a recipe for disaster. With the U.S. dollar ripe for a rather large short covering rally, it might be possible for equities to suffer from corrective trade at some point in the near-future. This move has been a long time coming...we haven't given up on it, but warn those that have gotten complacent in the currency markets (and thus commodities) there could be some ruffled feathers when the somewhat inevitable technical trade takes hold. |
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