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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (8187)	5/24/2000 3:13:00 PM
From: papi riqui	Read Replies (3) \| Respond to of 9427

To buy or not to buy, that is the question... It should be apparent by now to us all that we are in a full blown bear market and not just a "market correction", at least as to the Nasdaq market. The strategy of buying on the dips has finally run its course as the Nasdaq dribbles lower and lower. Only the most nimble of traders buy on dips that often turn quickly into bigger dips. But the truest of investing truisms is that one should buy low and sell high. Unfortunately, this market seems to have exposed the dyslexia many of us never knew we were afflicted with until now! Therefore, the question I pose to the thread is: if the time to buy is when prices are low and people are talking about jumping out of windows, is that time now? For example, consider a stock like MCOM. Assume that you are convinced that the MCOM fundamentals are solid as a rock, that it has cash on hand (with no debt) far in excess of its current share price, that the next 6 months will inaugurate a sustained period of incredible growth in the company, and that it is 80% off its recent high. On the other hand, the MCOM chart could not possibly look worse than it does, i.e., it is trading far below the trend line with no signs of recovery. About the only good thing you could say is that the upside is far greater than the downside from here. Basic P&F says to wait for a buy signal in such a case and don't worry about missing a few points when the train turns around and starts heading north, especially if the upside potential is great. Makes sense, because you never know for sure that a turnaround will occur until those buy signals start showing up. You could be stuck with dead money for quite a while waiting for the turnaround in a market like the one we're in, or worse yet, with no money if the turnaround never occurs. But what if you're convinced that the turnaround will occur, that it's just a matter of time and you are in it for the long-term. If the downside risk is relatively small compared to the upside potential, does it not make sense to ease into a position while the price is low and patiently wait for the expected (hoped for) inevitable recovery and rise in share price? Or would you simply wait for P&F to tell you when to buy? What would you do? Anyone