Investing General Discussion

LachiusTZ said:

And can someone decipher the last couple pages of investor speak?

Most of that shit sounded like gibberish

Click to expand...

Buy low, sell high.
Or more colorfully, the time to buy is when the blood is running in the street.

LachiusTZ said:

Lol, you fucking assholes. I understand the buy on a down swing etc. I meant like the following.



Some of that I get, like the general idea. But there is about a page with similar posts that I skimmed by and just couldn't really digest in a meaningful way



That's a single item.

The real panic is when stores have no food.

Edit:. Spoke to half a dozen people yesterday at Sam's. None of them were concerned. At all.

The run on grocery stores hasn't even started yet

Click to expand...

Disclaimer: I am not a professional trader etc...

So it's like this, when you are in extremes (parabolic moves up or down) you are outside standard deviations so trading on fundamentals doesnt really work. Momentum doesnt work either because it is all going one way.

So all you can do is trade on technicals which is what the algos are doing. DMA is the daily moving average. It can have any set number of days. I use 50 and 200 together mainly. I combine that with levels of support (previous lows). These are places algos and technical traders are going to make a stand and do some buying.

Example: the 50 DMA was blown for everyone by Tues afternoon for the most part. Meaning current price was below the average price of the last 50 days. So I look at the 200 DMA for a possible floor and assume the algos will the same. If it crashes through that I am looking at previous lows for the next floor. I also look at 20% down from the 52 week high (another possible support). I use this to make educated buying points in small chunks.

So the SPY had a 200 DMA of $304.24 (a a possible floor). Once it crashed through that the next real support floor was about $285. And this morning it crashed to $285.54 and rallied. That support level held (for now and produced a bounce). Between the 200 DMA and the 285 support level there was nothing but air. I had bought a small chunk at the 200 DMA and another at about $286.

For clarity I use the IVV instead of the SPY but they are functionally identical.

That is what I meant by the terms I used in my previous post. Also with passive investing in index ETFs, the wholesale selling means some high quality companies drop for no reason other than they are in the index. I look for high quality companies getting oversold due to their high weight in an SP500 index.

SDsurfer said:

Thankfully I set aside a decent amount of cash in my accounts to start buying as of today. This Coronavirus shit will soon pass.

Click to expand...

Disease that makes people sick for 3 months will be gone in no time. Buy the dip, old people definitely can't keep cashing out like this.

I like holding onto lead weights in the ocean too.

The retirement accounts of old people who die are mandated by law to be immediately liquidated. Gonna be a fun year.

This is just so good.

Royal Caribbean options taking off. 2 days ago I was down 40%. Today it covered all the loss and is up 20%. If this virus isnt the actual plague, I might just hit a grand slam on this trade.

I don't get how y'all can get so hung up one seeing day to day or month to month drops like this. The only thing that matters is year over year.

Only reason the drop of 20% today should matter is if you needed cash today.

TJT said:

I don't get how y'all can get so hung up one seeing day to day or month to month drops like this. The only thing that matters is year over year.

Only reason the drop of 20% today should matter is if you needed cash today.

Click to expand...

Speaking only for me, I have had cash on the sidelines waiting for entry points. So watching it closely when it is crashing is important for me. I basically ignore the markets when they are happily cruising up. Volatility = Opportunity for me.

Sanrith Descartes said:

Speaking only for me, I have had cash on the sidelines waiting for entry points. So watching it closely when it is crashing is important for me. I basically ignore the markets when they are happily cruising up. Volatility = Opportunity for me.

Click to expand...

This is exactly what I do.

Janet Powell just let everyone know that everything is fine. Trust him and the Fed. Markets instantly go parabolic to the upside. That is true power.

Time to see if there's another blood bath on close. Lot of people who bet on the market going up are gonna get hosed again I think.

This market is brutal and I don't expect it to get much better. So much for trying to control panic by controlling the message. Nobody is buying it or anything else it seems like. I really think we're in the territory where things could get way worse than a correction.