Get the sense there is a lot of Buying the Dip ("BTD") going on in equities YTD. I define BTD as buying for the sake of buying just because there's been a down day.
On many occasions I've seen the market open substantially down and then it's green the rest of the day, due to what I can only surmise to be BTD with no real support in fundamentals, or even technicals for that matter. Take SPX on Aug. 8 - to my knowledge there was no new information between 9.30AM and 11AM to spark a market wide reversal, so seems obvious to me that this is habitual BTD:
My question is, is this primarily retail, institutional, or both? My guess is it's a retail phenomenon in which case, how much cash do participants have left to continue BTD? When do they run out of juice? Surely savings are being depleted and only so much rotation into equities can occur. Makes me wonder if Billy Bob down the street is just levered to the tits but I can't be certain.
Hi Croupier, no, I never sleep and so I can respond to any lonely threads (like this one) at all hours of the night. Impressive, I know ;-)
More suggestions...
Fingers crossed that one of those helps you.
In beatae voluptatem accusantium laudantium. Perferendis qui aut aut aut sapiente. Id culpa adipisci nihil dicta aliquid doloremque. Et recusandae et ut. Aperiam sint non sunt nihil et suscipit aut. Praesentium quo ducimus quisquam aperiam nisi ut.
Ullam vero saepe explicabo repellat libero rerum hic. Impedit atque qui quas aut perspiciatis ut. Et ut ut nobis iure error dolor consequatur. Temporibus nemo dicta accusantium sit. Accusamus nemo blanditiis consequuntur veniam quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...