Buy the Dip – The Only Strategy that Works Anymore

How quickly things can change. 48 hours ago the S&P 500 had broken key support, and looked poised for a move lower as the “double top” crowd was chirping (hand raised). Today, on the back of a slew of better than expected earnings reports the market is having its best day of the year. Now the conversation switches from breaking support to testing yearly highs – just that quickly! We’re only 9 points away from that stubborn 1340 level that served as resistance a few weeks ago. I had mentioned earlier in the week that we have only had two instances of three down weeks in a row since the beginning of 2010; after Monday’s open one thought this would be the third, but not anymore. Once more congrats to those who said in the comments section to BUY THE DIP – the only strategy that works anymore.

About Mark Hanna 542 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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