*AV*--I can't disagree with you on this subject. Though not stated in these words, I would wait for the turnaround and jump aboard these stocks right now. I have been slightly negative on this sector and am buying on the way down for the ride up so I do not miss the bottom. If you think about a mathematical parabola (U), I am buying on the left side of the curve. I hope that the more conservative people in our community try to hit the bottom of this curve but definitiely catch the upswing on the right side of the curve. I have the resources to position myself and wait. For others, the wisest thing to do is to watch and try to hit the right side of the curve before a massive move up.
Beleive me, there is time and even if these stocks go up 10-20% by virtue of being on the side for now, it is just a fraction of where they will go down the road. Just look at the 52 week highs and lows. The highs are really not as high as the histroical highs have been because of this protracted retracement period. However, even using these lower numbers, you can rest assure most of the stocks we talk about will regain those highs. CYMI will close to triple in price over the next 3 years at the longest. Who cares if you are in at 17, 20, or 23. You still will get a nice ride.
So if you are inclined to wait, that is a good strategy for now. I think the summer doldrums will buffer any really rapid rally in the short term. My bet is on a rally starting right after Labor Day. So there is time to do what is beneficial for all.
Admittedly I am forcing a few trades which I do not advise anyone to follow on. I have come off of a great trade and have gone a good deal to cash and no margin. so for all the trades I am making, I am still premature and still not fully invested. I am just slightly this side of conservative<GGG>.
Andrew |
