Dip Buyers Feel Pain for First time in…. a While

After this morning’s buy the dip knee jerk reaction, for the first time in a long while some dip buyers find themselves underwater. Until a pattern breaks, traders will repeat it indefinitely – the fad since QE2 was hinted was buy every dip. What has changed nowadays is these patterns don’t reverse for a very long time. Aside from some trouble in November due to Ireland, this has been the only trade in the market.

Still nowhere near the 20 day moving average – much like a month ago when I mentioned this was my line in the sand, we are nearing it close to the end of the month. But with the first of the day month effect almost always leading to big up days, that was reversed quickly and it’s been non stop upside since.

About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

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