Key insights
- The author warns against blindly buying dips, using defense stocks as an example where prices fell despite bullish news and analyst upgrades. This suggests a potential for continued downside in individual stocks and a cautious market sentiment, implying a bearish outlook for specific tech and defense equities if downtrends are established.
Don’t trust the market. Look at noc. Peaked right at 724 before the war started. Then, sell, sell, sell. Cramer said to buy all these on the way down. Analysts raised price targets all the way down. Bullish news constantly, didn’t matter. I thought ok I can buy at 550, that’s the support. Went right through, did a pity bounce, then down to 520. Assuming the market is acting reasonably this doesn’t make sense because you would think it gained in value and should be worth more than last year. But that didn’t happen and there’s no floor when this stuff starts a downtrend.
I’m just saying, be careful buying dips. Like especially on stuff like ibm or Qualcomm or even Nvidia.