Looking at the recent performance numbers on the 20 stocks I’m tracking in my Dip-O-Meter as of the close on Friday April 9, I have to conclude that for most of these stocks it’s time to take a pause on any “buy on the dip” opportunities. What I’m seeing in this sample is a general weakening of the upward bounce on rally days from these stocks–and without a strong bounce on a good day there’s not much reason to buy on the dip.
My revised Dip-O-Meter as of April 1–to me it looks like this buy on the dip moment is over (but wait for next time)
This buy on the dip moment is over–this week’s revision of my Dip-O-Meter argues to me. The discounts to the February highs are, in general, getting smaller. And in many cases the size of the bounce that I’m seeing on up days is decreasing too.
I’ve scrubbed through the 20 stocks in the Dip-O-Meter, with updated numbers as of the close on Friday, March 26, looking for the best three buy on the dip trades. (Why only three? Because I think the same volatility that has created these profit opportunities makes it hard to be certain of a trend and I don’t want to bet the farm with the current degree of uncertainty. My choices for trades that I’ll put on tomorrow in my Volatility Portfolio are SunRun (RUN), Teladoc (TDOC), and PayPal (PYPL). These are all going into my Volatility Portfolio
Today I’m adding a second 10 stocks–to the 10 already listed–to the Dip-O-Meter. I’m tracking all 20 looking for buy on the dip opportunities. My take after today’s (March 23) action is not quite yet