Please Watch My New YouTube Video: Quick Pick Visa (V)
Today I posted my 319th YouTube video: Quick Pick Visa. And I’ll be adding the stock to another of my portfolios.
Dip-O-Meter
Buy on the dip–or not (and when)? My latest revision to my Dip-O-Meter: More stocks, more timing guidelines, more ways to make money on this drop
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
Buy on the dip? When? My December 12 update to the 25 stocks in my Dip-O-Meter
If not now, when?
When I checked the prices on the 25 stocks I’m tracking in my Dip-O-Meter at the close on December 10, a substantial group had dropped from the November 28 price. Nvidia (NVDA), for example had moved down to $301.98 from $315.03 on November 28. Advanced Micro Devices (AMD) was down to $138.55 from $154.81. Tesla (TSLA) had retreated to $1017.03 from $1081.92 on November 28. Time to buy? Not yet, in my opinion. And how about for other stocks in my 25 buy on the dip candidates?
After Friday’s panic selling: My update to the 25 buy on the dip stocks in the Dip-O-Meter
Oddly, the big sell off on Friday hasn’t created as many buys among the 25 stocks in the Dip-O-Meter as you might expect. Part of the reason is that the run up in stock prices in 2021 has been so fast that many stocks are still way above the 2021 lows. It’s hard to call Nvidia (NVDA), for example, a buy on the dip opportunity when the stock even Friday’s 3.58% drop to $315.03, is still way above the 200-day moving average at $190.81. Part of the reason is that, in my opinion, we’re looking at some negative trends in the economy, from the resurgence in Covid infections, and from inflation/interest rates/the Federal Reserve in the first half of 2022. Do you really feel in a rush to buy Disney at $148.11 after Friday’s 2.13% drop to $148.11 when it looks like park attendance is going to get slammed again by the Pandemic? Or MGM Resorts International (MGM)? Part of the reason is that existing negative trends haven’t bottomed out. Volkswagen (VWAPY) doesn’t look like a bargain at $18.50 after Friday’s selling because China’s auto market remains in turmoil, for example. Same with Freeport McMoRan Copper & Gold (FCX) on slumping global copper demand. Which doesn’t mean I’ve got nothing to recommend for buying after Friday.
Look for my update to the Dip-O-Meter later tonight (or tomorrow morning before the market open)
After Friday’s panic selling, I’m working to update the Dip-O-Meter in a search for buy on the dip bargains. I expect to post that update later tonight in time for the market open tomorrow, Monday.
25 Stocks for the Buy on the Dip “Dip-O-Meter” as of November 14
This is a very tough market for Buy on the Dip investors and traders. Not, as you might think, because a market that hits a new record high just about every day doesn’t offer very many opportunities to buy on the dip. Actually a market melt up, like the one we’re now experiencing, offers a lot of buy on the dip chances. That’s because while everyone wants to hold the market’s rockets, no one want to hold any stock demonstrating any weakness. Sell at the slightest whiff of bad news–as shares of Oatly (OTLY) demonstrated today, November 15, when they plunged 20.81% on disappointing earnings and guidance for the remainder of 2021 and into 2022. (Oatly is on this Dip-O-Meter list.) One problem is that plunges tend not to last very long.
Individual investors aren’t buying on the dip–I think they’re waiting for bigger bargains
An interesting–and I think important–post by Ethan Wolff-Mann on Yahoo Finance yesterday. According to Data from Vanda Research, individual investors haven’t been buying the September dip.
New buy-on-the dip targets (as of May 14) for the Dip-O-Meter
Last week’s sell off and rally, which left the Standard & Poor’s 500 down 1.4% for the week, resulted in farther dips in many of the Dip-O-Meter stocks. The picture that emerges is much more complicated than simple advice to “Buy on this dip.”
Dip-O-Meter update for April 9–time to give “buy on the dip” a rest for a few weeks
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.
Dip-O-Meter update for March 29–taking a very modest bite of buy on the dip with three picks
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
Adding a second 10 buy on the dip candidates to my Dip-O-Meter 20, now at 20 in total
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
Jim’s Stock Alerts
Download Jim’s eBook for Free
