Trade Alert: Time to buy?
Time to “buy”?. As always, there’s no set answer to that question, but the the shortest answer to that question is yes, we’re getting to the point where it’s probably time to start scaling into some more long side exposure as the markets have really started to get a panicky. I used the word “start” there a couple of times in that prior sentence to drive the point home that you’re not going to draw a line in the sand here. Indeed, I’m just gently looking at scaling into some more of ZNGA, FIO and LVLT common stock today and probably some AAPL next too.
Is it hard to make the buys right now while the stocks are down and the markets are down and the sense of dread and panic among the bulls is rising? Of course, and as I’ll remind you guys many times — the hardest trade to make is usually the right one. Remember when I wrote this article:
Make the hard trade
In it, I wrote:
You know how good it feels right now? Remember how bad you felt when the mainstream media and the markets were freaking out about the Greece-EU-Crisis a few months ago?
Another old saying you guys should think about is — the hardest trade to make is usually the right one. How hard is it to sell Apple right now? How hard is it to trim down as the markets are going nuts? Then again, how hard was it to buy when the markets were crashed and the Euro was supposedly going to destroy our US economy? Make the hard trade.
Well, we’re certainly at some sort of a flipside of that analysis right here, right now. But again, I’m not saying go all-in here. Just as I didn’t recommend selling everything and getting short in that article — and to be sure, some of our stocks and some of the indexes continued rising from the place they were at when I wrote that. I’ve no idea if we’re at a short-term, intermediate- or any other kind of bottom right here right now this morning with the Nasdaq at 2953, down about 7% from its recent highs. But the outlook for our stocks remains very positive and the economy/market continue to present themselves bullishly for revolutionary tech stocks, and we were selling at much higher levels and have been patient waiting for better pitches to put that money back to work.
These are definitely better pitches, whether they’re the exact bottom or not. So you make a couple swings today. And don’t get too leveraged or crazy or too aggressive for you, whatever that “too” may mean for you personally.
I’ve said it before and I’ll say it again: Make the hard trade. Or as Yoda might say it, “The hard trade is one you should make, yes.”
