In times of difficult decisions always go back to the basics. Remember the primary rules.
Here's one of the important ones: Price, or a market, can fall of it's own weight. It takes buying to move a stock, or a market, up.
All it takes for this market to continue to fall is a mass consensus, by those who still have cash, that prices will be lower in a day or two. As long as they believe that, and it seems most do, they will wait. After all, what have they to lose? They are unaffected by the carnage. In fact the worse it gets the better for them. Day by day they see better prices.
Sellers simply determining to hold and not sell out cannot sustain a market. It sure can't move it up. So it becomes a stand-off between those holding shares and hoping they won't get hurt--and those holding cash knowing they will win simply by not buying yet.
Fool me once shame on you, fool me twice shame on me. The PPT team may go to work Monday. They will fail. Every player witnessed April 4th. The big dip that came back up. And yet, we are not up. Those holding the buying power are simply going to sit on their hands and grin. PPT made it's play 4-4 and this go around they are going to be on their own. They may be able to force a pop, but they will be sold into very hard, and the players not part of the PPT, well, we are just going to sit on our cash.
It's not always neccesary or desirable to be in the market. A day off, a week, a month. The cash isn't going to evaporate, the stocks might. The cash isn't going to spoil or go bad. It's not hurting a thing right where it is. |
