Who trades right at peaks and exact lows? Only liars.
Last week’s Emerging Market insanity allowed me to buy blue-chip PVD for Peanuts.
Successful investing is difficult. Catching long-term pinnacles when selling, or buying at even daily lows, let alone yearly ones, is statistically impossible. The 315 point drop in the DJIA on January 24th was enough to test everybody’s nerves and trading instincts.
Hardest hit were shares of businesses located in emerging markets (EMs) and the ETFs that specialize in them. The huge redemption pressure from quick-on-the-trigger traders forced portfolio managers to sell EM holdings last week, regardless of whether they still liked the stocks’ prospects.
Thinly traded issues reacted violently as bids disappeared and spreads instantly widened. At 10:58 in the morning I entered a below-the-market limit order to buy PVD at $82.30. It was a price south of PVD’s previous 52-week bottom. Someone hit my bid at 11:01 AM. I felt very smart.
Read the full story by clicking on the link below.
Who sells at exact tops and buys only at final bottoms?
Â
Â
