ProgN said:
Max Stonetrail said:
ProgN said:
SF2004 said:
What we saw today was pure market manipulation and causes people to lose faith in the system.
ZERO changed from morning to afternoon.
They ran a pump and dump on the entire market.
I need to stop looking at charts and step away... just making me angry thinking about this afternoon.
It's not manipulation as much as it's psychology. Bears have had their asses kicked for over a year, do you really think they're not going to try to exact their pound of flesh from the bulls? You're either fearful or looking for trades, which group you're in is up to you. My advice is to avoid cheap unknown stocks because that's not where money will flow into. Fewer shares in fund favorites will grow your account faster because stocks are the best vehicle to outpace rampant inflation and that's where the money will funnel to. Don't use margin and use options at your own peril.
Add to that the Fed no longer pumping QE into the market. That is HUGE for the bull side. Also, no more stimmy checks or child tax credit. These kinds of things have contributed to the bull run for a while.
Don't fight the Fed. I hear this over and over and it rings true every time.
Also, yes today sucked, but I bought my first stock in 1994 and this isn't close to the first or tenth or even the hundredth time I've seen it. And we will likely see it again in the next day or week or month.
And it happens in reverse to, we just don't remember it as vividly because the pain hurts and the gain doesn't.
Your points are correct but I'd add this to your summation. Stocks are the easiest and best vehicle to outpace inflation. I doubt anyone here or anyone at their jobs are decreasing 401K contributions out of their checks. That money will continue to accumulate and will have to be put to work. When that happens, I don't believe it will spread to all stocks, that's why I'm focused on the best of the best. I suggest avoiding cheap relatively unknown stocks and putting your money in the leaders. To get the best return, buy when everyone is afraid before the funds do.
Totally agree on quality. All those stocks that were so fun to trade this time last year in the Robinhood craze are now sitting at the bottom of people's portfolios, mine included.
I would add be careful even with quality companies like NFLX and their big moves. The drop today looks like a great buying opportunity, and if you picked some up and it pops tomorrow, get out. Take the money. I made mistakes with ROKU and PYPL. Got a good price after a big drop then a good bounce, didn't sell, now bag holding. Those are good companies and they are in my retirement not trading account, so I am comfortable with the years I have to wait. I will admit I hate looking at them for now, but they have hope. SNDL, MBIO, DPW (now NILE), CLOV, dare I say WWR, etc, not so much.
It's easy to get caught up in this thread in the day to day even minute to minute chart action and forget the macro factors that are chart busters like the Fed, the 10 year bond's affect on tech, inflows from 401ks, Fed actions.
