Momentum Monday – The dip was bought again

The charts in this video are powered by MarketSmith

Warren Buffett continues to sell. After selling his entire stake in airlines, his last 13F shows that he has decreased his position in financials (GS and JPM). And this from a brilliant guy whose favorite holding period is forever. What is he seeing that the rest of us are not?

Another legendary money manager, Stanley Druckenmiller said the current levels for SPY offer terrible risk/reward for the bulls.

David Tepper chimed in with “ I haven’t seen the market so overvalued since 2000”.

And yet, the dips continue to get bought. The number of stocks making new 52-week high is increasing and so is the number of long setups. Biotech, software, gold, and silver have been notable leaders for the past few weeks and they are likely to continue to shine in a strong or even neutral range-bound tape.

Try my new subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders, and much more. See some of the recent testimonials.


Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.

Check out my free weekly email. to get an idea of the content I share with members.