Stocks - The Best Buys 2

[bluejays]

I sold my company bank shares at a 25% loss compared to 3 weeks ago this morning. First time doing selling in 13 years, but I needed it for a July home closing. I personally can see this going at least 10% lower. In North America we're not used to this type of hardship, and anything that gets sensationalized in the news will ultimate show up through the stock market. Once deaths start showing in the "1st world" it'll change the game. Things are starting to look dire and we're really not sure what the work world will look like - especially for front line people who have to be at stores and customer facing to make a living. I'm actually very very surprised that every economy hasn't shut down borders and self isolated in for long term benefit. There's also a bullwhip effect in a situation like this. Panic is setting in but when companies actually start showing losses that will be a few months ahead before we see that. That will be the icing on the cake when people fully understand the magnitude of this on the economy. Look at the 2008 crisis - it was a solid 4 months before things were realized on the bottoming out of the market. This has the potential to continue longer, so I can't see how this is a 4 month recovery on the stock market. I have a short term perspective because of my situation, but even if you have long term vision, why wouldn't you buy in later? There's no light at the end of the tunnel at the very least in the next month, so why buy in now when it can go lower?

[OMG!WTF!]

Originally Posted by Senator Clay Davis

Dow jumped 1400 points in 10 minutes after the fed announced $500 billion in short-term bank funding, but it's already sliding back down.

Trump finally got his quant easing.

[wwkayaker]

Originally Posted by fleury

even if you have long term vision, why wouldn't you buy in later? There's no light at the end of the tunnel at the very least in the next month, so why buy in now when it can go lower?

The bottom is not known by anybody so why not now. I’m content with what I bought. I have money to continue averaging down if that is the case. I could be very wrong or I could be right. I don’t know. I’m not selling any and don’t need the money for anything. Be fearful when others are greedy and greedy when others are fearful seems to fit quite well at the moment.

[puckedoff]

I like that rule of thumb but I have to admit I am greedy when others are fearful and greedy when others are greedy.

[Senator Clay Davis]

Well hey I guess on the plus side technically no double digit % losses?

[rain_e]

Originally Posted by Senator Clay Davis

Well hey I guess on the plus side technically no double digit % losses?

Post the TSX Composite Index today.

[Senator Clay Davis]

Originally Posted by rain_e

Post the TSX Composite Index today.

[afc wimbledon]

Originally Posted by OMG!WTF!

Trump finally got his quant easing.

1.5 trillion, didn't even touch the sides

[flames_fan_down_under]

What does "didn't even touch the sides" mean to a layperson?

[chedder]

Originally Posted by flames_fan_down_under

What does "didn't even touch the sides" mean to a layperson?

Hot dog down a hallway? Didn't do/feel a thing. (Useless) a naughty innuendo. Unless I'm out to lunch.

[flames_fan_down_under]

I thought it was finance lingo.

[OMG!WTF!]

I think you need more of a reason to buy then just because its gone down a lot. The higher for longer theme since 2009 is broken. I think we need a big reason to buy like a viable vaccine, virus gets under control, things get back to normal. At the very least you need solid technical evidence of an actual bottom and change in direction. I don't this isn't the kind of drop that you'll miss on the way back up.

[afc wimbledon]

Originally Posted by chedder

Hot dog down a hallway? Didn't do/feel a thing. (Useless) a naughty innuendo. Unless I'm out to lunch.

No, you got it ok

[afc wimbledon]

If you're going to buy consider company debt before all else, there are a lot of great companies that will go to the wall due to leverage, earnings, dividends, PE ratio's and all the rest don't count for crap if the thing goes belly up because they cant make payroll

[Torture]

Well I looked at my investments. Ouch.

[MoneyGuy]

Originally Posted by Torture

Well I looked at my investments. Ouch.

That’s your problem. You looked. Don’t do that.

[DoubleK]

Originally Posted by DoubleK

S&P 500 needs to hold this level or as Slava said earlier "look out below".

Originally Posted by OMG!WTF!

I'd expect this is the level that will hold up. I suspect the last 5% was Trump stupidity. But I'm not into calling bottoms.



It's really easy to day trade on big down days like this. Anything that goes up today is doing so for a reason.


It's freaky seeing MSNBC all split up in different make shift studios. This is what a disaster looks like I guess.

Originally Posted by OMG!WTF!

I don't like posting charts cause it's still considered voodoo. But it helps to see the big picture. This charts starts in 2009 at the bottom of the financial crisis 11 years ago. On Friday we were still above what would be considered normal for the last decade. Now we're right in the middle of the channel at 275. I suspect we'll fall to the bottom of the channel. We'll probably start seeing some better virus news and then continue to meander up the well established price channel. If we fall out of the channel, below 260 we're likely in for some prolonged suffering.

2480 is a massive technical support level. Current S&P 500 futures are negative.

Stick a fork in it.

[MoneyGuy]

I’m considering DCA’g into the market with cash I’m sitting on.

[Slava]

Originally Posted by DoubleK

2480 is a massive technical support level. Current S&P 500 futures are negative.

Stick a fork in it.

Futures can be volatile and the pyjama traders get a lot wrong. That's not to say it won't happen tomorrow, but we'll see. Sometimes there are significant differences by the time the market opens in the morning.

Originally Posted by MoneyGuy

I’m considering DCA’g into the market with cash I’m sitting on.

DCA was awesome for me in 2008/09. Keeps you honest and removes emotion entirely. You could pick a better bottom, but you could also do worse (depending on your timeframe and such).

[Calgary14]

In 2008 the dow jones industrial average dropped 50% from 14K to 7K. This market correction we are down from 28K to 21K, or 25% (so far). This one seems much more dramatic and fast, and probably is, but overall in the long term it will smooth out